when people see politicians in the news for how they handle their taxes, it’s easy to think they’re doing something shady. But in reality, many of the strategies they use are perfectly legal—and available to everyday Americans as well. Two of the best examples are the S corporation strategy and the real estate professional status with depreciation deductions.

The S Corporation Advantage

In 2016, Joe Biden structured his $14 million book deal through an S corporation. He paid himself $700,000 in salary and saved nearly $600,000 in FICA taxes. While the headlines made it sound controversial, this strategy is not only legal but also common among small business owners.

Here’s why it works:

• As the owner of an S corporation, you must pay yourself a reasonable salary.

• Anything above that salary can be distributed as profit, which isn’t subject to payroll taxes.

• This structure can save significant amounts in self-employment and payroll taxes.

If your accountant isn’t talking to you about this, you may be leaving money on the table.

Real Estate Professional Status and Depreciation

Donald Trump often made headlines for claiming real estate professional status and using depreciation deductions. By doing this, he was able to write off large amounts of taxable income.

Here’s how it works:

• If you qualify as a real estate professional under IRS rules, you can deduct real estate losses against other income.

• One of the biggest tools here is accelerated depreciation—writing off the value of property much faster than its actual wear and tear.

• In the year you purchase real estate, you can use depreciation to generate huge tax savings.

Again, this is not a loophole or shady trick—it’s explicitly allowed by the tax code.

Don’t Be Afraid to Use the Rules

These strategies aren’t reserved for politicians or billionaires. They’re legal, built into the tax system, and used by millions of Americans. The problem is that many people miss out because their accountants are overly cautious or don’t bring these ideas to the table.

The key is making sure you:

• Work with a tax professional who understands and embraces proactive strategies.

• Follow the rules around reasonable compensation for S corps.

• Confirm you qualify for real estate professional status before claiming it.

Final Takeaway

Don’t let the headlines fool you—using the tax code to your advantage doesn’t make you a crook. It makes you smart. Both the S corporation strategy and the real estate professional status with depreciation are powerful, legal tools to reduce your tax bill. If you’re not exploring them, you’re likely leaving money on the table.