3 Tax Write-Offs the Wealthy Are Using in 2026, According to Grant Cardone
Written by
Gabrielle Olya
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Molly Sullivan
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U.S. tax code doesn’t treat all income the same, and for wealthy Americans, that difference can dramatically shrink what they owe each year.
According to a 2021 White House analysis, the wealthiest 400 billionaire families in the U.S. paid an average federal individual income tax rate of just 8.2% — significantly lower than the roughly 13% paid by the average taxpayer that year. That’s largely because the wealthy utilize smart strategies to lower the taxes they owe.
Grant Cardone, a private equity fund manager and real estate investor, said high-net-worth individuals are deeply intentional about how and where they spend money, because the biggest tax advantages often go to business owners and investors. Cardone shared the write-offs he and other wealthy Americans plan to use in 2026 to reduce their tax bills — and, in some cases, defer them altogether.
Here are three of the most powerful.
1. 100% Bonus Depreciation for Business Assets
Bonus depreciation allows businesses to immediately deduct the cost of certain assets — such as aircraft, machinery and equipment — in the year they’re placed into service, rather than spreading the deduction out over time.
As of January 2025, Congress restored 100% bonus depreciation for qualifying assets, making it one of the most valuable tax tools available to business owners this year.
“[The wealthy] make big investments in companies,” Cardone, who will be hosting the 10X Real Estate Summit in Fort Lauderdale, Florida, told GOBankingRates. “They take big positions where they get big write-offs. They’re very tax-driven, because they know that’s 40 or 50% of their game now.”
Cardone has used bonus depreciation on assets like aircraft he uses for business purposes.
“I buy a plane, I get to write off 100% of it,” he said. “[The wealthy] buy planes. They might buy two or three planes and charter them out. It’s a brilliant way to defer or reduce tax bills. They buy equipment, they buy machinery. They might say, ‘Rather than me making an investment in this company, I’ll buy your machinery,’ and they get the tax write-off.”
To qualify, the asset generally must be used more than 50% for business, and the taxpayer must have sufficient taxable income to offset. And while bonus depreciation can reduce or defer taxes, it’s still depreciation — not free money.
2. The Heavy Vehicle Tax Write-Off
Certain vehicles with a Gross Vehicle Weight Rating (GVWR) over 6,000 pounds qualify for enhanced tax deductions under Section 179, along with bonus depreciation in some cases. In 2026, this can allow eligible buyers to deduct up to $31,300 upfront, with additional depreciation available depending on the vehicle and usage.
Because of this rule, Cardone said wealthy taxpayers often choose larger SUVs or trucks that meet the threshold — and argued that middle-class business owners frequently overlook this advantage.
“I know plenty of middle-class Americans who buy a Porsche,” he said. “Well, rather than buying a Porsche, they should have bought a G-Wagon, because the G-Wagon weighs enough to write off. They could have bought an Escalade, but instead, they bought a fancy car because they want to be cool and sexy.”
To qualify, the vehicle must be used at least 50% for business purposes. Personal use reduces the deduction proportionally, and if business use drops later, the IRS can recapture part of the write-off. Still, for business owners who already need a vehicle, this long-standing tax rule can make a meaningful difference.
3. Real Estate Depreciation and Cost Segregation
Cardone believes that real estate — particularly multifamily properties — remains one of the most powerful tax shelters available, even for investors who aren’t ultra-wealthy.
“Rather than buying one house, you could buy four units,” he said. “The middle class could buy a $1 million house to live in, or they could buy a million-dollar fourplex, rent three units out and get a $400,000 tax break.”
Several tax provisions make this possible:
- Residential rental depreciation: Residential rental properties are depreciated over 27 1/2 years, allowing owners to deduct a portion of the property’s value annually.
- Bonus depreciation: Certain segmented components may qualify for accelerated write-offs.
- Cost segregation: This strategy separates parts of the building, like fixtures or wiring, into shorter depreciation timelines (five, seven or 15 years), front-loading deductions into earlier years.
While these strategies are more common among high-income investors, they are available to anyone who owns qualifying rental property.
Why the Wealthy Save More on Taxes
Cardone said the core reason wealthy Americans benefit so much from the tax code is simple: They spend differently.
“It takes cash to get a tax break,” he said. “There is no tax break without paying money. There’s nowhere in the books where you can get a tax break without paying for it. You have to buy something to get the break.”
The tax system largely rewards ownership, risk and capital investment rather than wages. For most Americans, the takeaway isn’t to imitate billionaire behavior, but to understand how the rules work, who they favor and why the biggest tax advantages often flow to those with the means to invest.
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