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What do you consider a fortune? Is $10K for the initial audit too expensive for you? If it is, then you are looking for a boutique firm.

Yes I have investigated the topics mentioned. Your argument in favor of form 5471 is in direct conflict with your earlier statements of the IRS ignorance of offshore LLC ownership identity. Earlier you argued that the benefit of the offshore LLC is that ownership is not recorded and therefore...

I've spent hours and hours researching IRS and legal documents on these proposed tax shelters in hopes that I would find something that would hold up. There is really no legitimate way to accomplish what you are talking about without the tax liability. There are a ton of law firms and tax...

LLC is pass-thru whether offshore or not. You are claiming the depreciation on a piece of US real estate. When the sale of that real estate occurs, the IRS will want the recap. Doesn't matter that it all happened under an LLC, it is assessed during the current tax period. If the LLC buys...

And leave the country for 6 months every year. Problem is that you can't go with her to most places for more than 3 months at a time. But I suppose if you're willing to try hard enough you could travel around and make it work. Or you could just pay taxes.

No, on the depreciation recapture it will be 25% of the prior depreciated $5MM. So the savings isn't excessive, but you would be saving a couple percentage points compared to regular equity trading. Again trading of 1256 contracts would get you a better rate than that. The only advantage to...

Yes but the entire premise of your argument is that the IRS rules are not real because they are based on the honor system. Failure to report required information is by definition tax evasion. Technically none of the trades that I make are reported to the IRS by my brokerage. It is up to me to...

Nope, it is classified as "source income" and is subject to 30% tax in the US unless the tax treaty with that particular nation specifies otherwise. the only way to get around it is if the spouse has no green card and is in the us less than 183 days during that year.

PocketChange, You also mention Bermuda in your earlier post as a great place for your scheme. You should realize that the US treasury has already forced most of the tax haven countries including Bermuda to sign and ratify a "Tax Information Exchange Agreement". This brings any financial...

Sure, the entity is outside the jurisdiction of the IRS, but you aren't. You still live here. According to the IRS, if a trust makes any disbursement to any US citizen, then the income of that trust is taxable under US law. Again, you still live in the US and will need some money to live on...

I should point out one thing though that PocketChange is promoting that is legitimate. He suggests buying a property, and securing a line of credit against the rents or equity in the property. Then using that credit to trade securities. This is perfectly legitimate and is known as gearing...

You are mixing up your technicalities. The IRS imposes a tax on the "world-wide" income of all citizens and permanent residents. This tax is assessed in the year the income was generated, and subject to 3% interest on late payment if you were to elect to pay the tax only on repatriation. The...

Bro, that's called fraud. And the "if they choose to report it" part is called tax evasion. I was assuming that the OP was requesting legally legitimate tax shelters.

Yes, it is any business. Any income. The kicker is that most people want to retain their US citizenship. You actually have to pay to be a citizen of the US. There aren't any legitimate ways that I know of to hide foreign income from US taxation without giving up your citizenship. Of course...

Yes but I already pointed out the problem with that. IMO, a person would have to be crazy to elect for a trading company to be taxed as a c-corp.

I hear comments like this all the time, but when the rubber meets the road, most people can't actually name a single benefit that is large enough to make the hassle worth it. Remember, we are talking about friends and family accounts here, not an off-shore hedge fund. He will likely be exempt...

As long as you meet the requirements, you would be able to take advantage of the foreign earned income tax exclusion each year. For 2011 it is $92,900. Any income after that would be subject to the appropriate tax rate for your entire income. IOW, if single you would start at 28%. The good...

Bone and KGB are correct on this one. There is no advantage in creating an LLC for a f&f account in a different state. In fact, quite the contrary; you might end up getting yourself into trouble. The LLC is a pass-thru entity and you'll still pay tax on income where you reside. The...

The only reason that you would be exhausted by trading is if you have no edge and the long term outcome is uncertain. Once you have an edge and the long term outcome of your trading is not a matter of hoping anymore, then trading becomes very boring. The hard part then is keeping with...

Well, you have to consider that simply asking the question eliminates the human moral and sentimental value of life and implies that there should be a logical value. Under those guidelines then we are talking purely in terms of logical stats and finance. My argument should be considered in...