Here are 5 ways that the super-rich can reduce their taxes

Rich people like to invest in equities because at the time of sale, taxes are generally lower than the rates applied to wage income – if the equity was held for more than a year. They can also afford to take bigger risks.

"Many of those with higher net worth also have higher risk tolerance and risk capacity, so target and low-risk funds do not always make sense", said Carson.

The long-term capital gains tax rates are zero, 15% and 20% for 2018, depending on your income. Federal tax brackets range from 10% for the lowest incomes to 37% for the highest incomes. Taxes on short-term capital gains on shares held for less than one year are related to your federal tax installment.

The rich are also looking to manage these capital gains and losses to their tax advantage, Featherngill said.

For example, there is usually "lightning activity" at the end of the year as people try to offset some of the gains they made earlier in the year. She also sees people investing in opportunity programs, investing in low-income communities, as a way to defer capital gains.

It's something that can be done by anyone, not just the rich. "If the gain is large enough, they can find ways to defer the tax on earnings," she said.