US billionaire running away from paying tax, now this businessman saved billions with this unique trick

Nvidia CEO Jensen Huang: There are many billionaires in America who adopt a variety of financial tricks to avoid tax. This list also includes the world's richest men like Elon Musk and Mark Zuckerberg.

Tax Saving Tips: The government needs a budget to run any country smoothly. To meet this need, governments around the world take tax on earnings beyond a certain limit. But American businessmen are taking advantage of the government loophole to save tax.

Jensen Huang, CEO of Nvidia, one of the world's richest men, has saved about $8 billion by transferring his wealth. Apart from this, there are many billionaires in America who adopt a variety of financial tricks to avoid tax. This list also includes the world's richest men like Elon Musk and Mark Zuckerberg.

America's 10th Richest

Nvidia CEO Jensen Huang is the 10th richest man in the US with a net worth of $127 billion. According to a report in the New York Times, according to US law, the tax payable on this property should be more than about $ 50 billion.

But the ideal may not be real as the 61-year-old businessman will transfer most of his savings to his family members. This will save him at least $ 8 billion in taxes.

How the tax was sidelined

According to the NYT report, Huang's financial strategy indicates that he will avoid paying taxes and transfer most of his savings to his family. Jensen Huang is one of the few names who are following this strategy to avoid paying tax. In the past, owners of companies such as Blackstone's Schwarzman, Meta's Mark Zuckerberg and Google have similarly sidelined themselves from paying taxes.

How this is possible

In 2012, Huang founded a trust in which Nvidia held 5.84 lakh shares. At that time it was worth $ 7 million. This move was part of this plan. This is known as "I Dig It" in financial circles. It was approved by the IRS in 1995. This type of trust helps to avoid paying tax on both property and gifts. Such a trust is transferred in the name of protection.

In 2016, Huang and his wife, Lori, further reduced their tax burden by establishing the Grantor-Retained Annuity Trust (GRATT). In such a situation, if its value is more than the amount paid to the grantor, then this property is allowed to be transferred to someone with tax free. There has been a significant jump in the shares of these trusts. Their value is now more than $ 15 billion.

How much did the world's billionaires save?

Since the early 2000s, the US property tax system has contributed little to federal tax revenue. According to the NYT, if these billionaires had paid taxes, the government could have earned around $120 billion in 2023 alone.