The 4 Biggest Tax Breaks for High-Income Households
Ever wonder how high-income households keep their tax bills relatively low? Here are the four biggest tax deductions for households making over $200,000 per year in income, according to data collected by the Tax Foundation -- and I'll guarantee that #1 will surprise you.
If you take out a loan and use borrowed money to buy an investment, you're allowed to deduct the interest on the debt on your federal tax return as an itemized deduction. This deduction is most useful for investors who like to buy stocks on margin and leveraged investments like real estate. However, there's a catch – you can only deduct up to the amount of income you received from the investment in question. High income households were able to deduct over $11.4 billion in 2014 for investment interest expense.
Image source: Getty images.
Source: Fool.com
