• Lumidaub@feddit.deEnglish
    7·
    5 months ago

    his own charity (this is wealth preservation tactic used by ultra rich).

    I’ve never understood how this is supposed to work. If his money goes into the charity, it’s not his anymore. Seriously, someone please explain?

    • gamermanh@lemmy.dbzer0.comEnglish
      12·
      5 months ago

      The things they do daily (food, travel, clothes, haircuts, etc) are expenses of the charity because they work for them and are the “image” of it

      Dump their money tax-free into a charity and then use it to fund themselves anyway

      • DeanFogg
        3·
        5 months ago

        So a charity is like a tax free checking account?

        • gamermanh@lemmy.dbzer0.comEnglish
          3·
          5 months ago

          Sorta, it’s more like having your rich parents pay for everything but the “rich parents” is your employer, which is just the corporation you set up to run everything. They usually use a company credit card as their daily use card and leave it to AP to manage

          The exact details are of course prickly as fuck but that’s a really basic overview of the idea

    • exanime@lemmy.world
      3·
      5 months ago

      Think of it this way…

      You take all your money and you have a lawyer form a charity (no tax) that you control. The charity rakes in even more money and all they make (via investment) is tax free (or practically so)

      Meanwhile, since you are employed by that charity, it pays for your mansions, trips, fancy foods, vacations, yachts, whatever you want… Basically it is like having a rich daddy that buys everything for you and you never have to worry about money