Anyone Trade from the US Virgin Islands?
- Thread starter Jayford
- Start date
2006-
You may be thinking of withholdings for foreign citizens. The USVI have a special tax treaty whereby US citizens claiming USVI residency are exempt from 90% of taxes. Some of the tax breaks may be contingent upon opening a business there, I don't have those details. However, I am not aware of any withholdings for US citizens who live in the USVI.
Jayford-
Internet access is great in St. Thomas. I travel mostly to the BVI where DSL is available everywhere, but it's the same in St. Thomas, plus all of the US cellular networks are local in the USVI (very very convenient).
I can't speak for St. Croix having never visited the island. Crime is reportedly a problem there, so I would opt for St. Thomas or St. John over St. Croix.
The IRS has clamped down hard due to many people who were cheating the system (getting a USVI driver's license and claiming residency while living in the Hamptons or whatnot). Now there many hoops you must jump through to prove residency. Read this article from start to finish, it covers most of the issue:
http://bloomberg.com/apps/news?pid=20601109&sid=avwOz7YrGJLU&refer=home
You may be thinking of withholdings for foreign citizens. The USVI have a special tax treaty whereby US citizens claiming USVI residency are exempt from 90% of taxes. Some of the tax breaks may be contingent upon opening a business there, I don't have those details. However, I am not aware of any withholdings for US citizens who live in the USVI.
Jayford-
Internet access is great in St. Thomas. I travel mostly to the BVI where DSL is available everywhere, but it's the same in St. Thomas, plus all of the US cellular networks are local in the USVI (very very convenient).
I can't speak for St. Croix having never visited the island. Crime is reportedly a problem there, so I would opt for St. Thomas or St. John over St. Croix.
The IRS has clamped down hard due to many people who were cheating the system (getting a USVI driver's license and claiming residency while living in the Hamptons or whatnot). Now there many hoops you must jump through to prove residency. Read this article from start to finish, it covers most of the issue:
http://bloomberg.com/apps/news?pid=20601109&sid=avwOz7YrGJLU&refer=home
No witholding.
Yep, you have to live there to get tax bennies. You pay taxes to the USVI, not the USA. Income tax rates mirror the US, except for cap gains which are lower. I read an article that they are phasing out cap gains altogether in 2008. I'm sure I will still get hit by some sort of AMT or something, but a 10 to 15% total bill beats the hell out of 40%+ if I go back to Cal. That alone would pay my mortgage (homes are about the same as S Cal in price. Low prop tax, high insurance)
That's just part of the reason. I would like to live there anyway.
Yep, you have to live there to get tax bennies. You pay taxes to the USVI, not the USA. Income tax rates mirror the US, except for cap gains which are lower. I read an article that they are phasing out cap gains altogether in 2008. I'm sure I will still get hit by some sort of AMT or something, but a 10 to 15% total bill beats the hell out of 40%+ if I go back to Cal. That alone would pay my mortgage (homes are about the same as S Cal in price. Low prop tax, high insurance)
That's just part of the reason. I would like to live there anyway.
Do you have a link to this article? Any idea what the equivalent taxes are for futures there?
No, just found it doing varying google searches with USVI + taxes, cap gains, etc. Can't remember which search it was on.
It is a fact that you don't pay US taxes though. You pay taxes to the territory instead. You must be a resident to do this.
I know some people use a USVI Exempt Company and pay ZERO taxes. I do not really know how this works. I may do a scouting trip out there in a few months and meet with a local tax guy at that time. I'll post here if I do this.
It is a fact that you don't pay US taxes though. You pay taxes to the territory instead. You must be a resident to do this.
I know some people use a USVI Exempt Company and pay ZERO taxes. I do not really know how this works. I may do a scouting trip out there in a few months and meet with a local tax guy at that time. I'll post here if I do this.