avoiding taxes

thecalip · Apr 24, 2006

Most people here don't make enough to have an offshore account. I read enough threads on this subject, and the only good advise I got is:

Stop worry about tax, and start making good trades.

If you are losing money, there is no tax to worry about.

dandxg · Apr 24, 2006

Quote from kooltrader:

You will still have to pay self-employment tax on the 80K.

I don't belive that is correct. If you trade under an LLC or IBC then you are an employee of the LLC or IBC, you aren't self employed. I could be wrong though. This requires sound legal advice though.

JangoFolly · Apr 24, 2006

Quote from kooltrader:

You will still have to pay self-employment tax on the 80K.

Unless you own/lease a seat on a futures exchange, trading gains are not considered earned income and are not subject to FICA. If you have your trading set up as a business you can choose to pay yourself a salary with a portion of your trading gains in order to have earned income for retirement contributions, SS credits, etc.

ajau · Apr 24, 2006

Get yourself citizenship or permanent residency in a country with no capital gains tax. Check your family tree to see if you descend from anyone who can to America from a low cap. gains tax country. Ireland is a low gains tax country that is actively seeking to repatriate Irish Americans. Myself? I have Croatian ancestry and Croatia is a zero cap. gains country. (with 22% VAT)
With an IB account it can be done.

Quote from dandxg:

Check out sovereignsociety.com or escapeartist.com. I am not affiliated with either, but they both specialize in expatriate offshore issues. Regarding the hedge fund specifically, I don't know. I have just looked into offshore for some time and these are best two and appear to be the most reputable that I have seen. Regarding taxation, if you are a US citizen or Perm Resident you are taxed on your worldwide income, with an exemption of 80k per person or 160k per couple. Here is the link. There are alot of husters in offshore kinda like trading. Be careful

http://www.bankrate.com/brm/itax/tips/20010221a.asp

dandxg · Apr 24, 2006

Quote from ajau:

Get yourself citizenship or permanent residency in a country with no capital gains tax. Check your family tree to see if you descend from anyone who can to America from a low cap. gains tax country. Ireland is a low gains tax country that is actively seeking to repatriate Irish Americans. Myself? I have Croatian ancestry and Croatia is a zero cap. gains country. (with 22% VAT)
With an IB account it can be done.

That's interesting I will have to look into the Irish American repatriation, since I am on both my Mom and Dad's side. I am also looking into Canadian Citizenship because my Dad is Candian. If I get it then I would probably renounce my US Citizenship and move somewhere like Easter Europe, where my wife is from, or maybe the Carribean. Then I can get away from the US taxes being paid expatriate over 180k.

Jayford · Apr 24, 2006

Quote from ajau:

Get yourself citizenship or permanent residency in a country with no capital gains tax. Check your family tree to see if you descend from anyone who can to America from a low cap. gains tax country. Ireland is a low gains tax country that is actively seeking to repatriate Irish Americans. Myself? I have Croatian ancestry and Croatia is a zero cap. gains country. (with 22% VAT)
With an IB account it can be done.

This still requires you to renounce your US citizenship though, or you pay US rates. Doesn't matter if you carry a foreign passport in addition to your US one.

Longhorns · Apr 24, 2006

Quote from dandxg:

I would probably renounce my US Citizenship and move somewhere like Easter Europe....or maybe the Carribean. Then I can get away from the US taxes.

Renouncing your US citizenship to avoid paying taxes? You must be damn proud to be an American.

Good riddance. :mad:

ajau · Apr 24, 2006

Canadians do not have to renounce their citizenships. Dual citizenship is allowed in Canada. In fact it even states so right on the inner front cover of a Canadian Passport.

Quote from Longhorns:

Renouncing your US citizenship to avoid paying taxes? You must be damn proud to be an American.

Good riddance.

Jayford · Apr 24, 2006

Quote from ajau:

Canadians do not have to renounce their citizenships. Dual citizenship is allowed in Canada. In fact it even states so right on the inner front cover of a Canadian Passport.

That's not the point. If you are paying US taxes as an American, you must renounce US citizenship to stop paying tax, regardless of other passports held, or where you live.

If you are Canadian, but do not hold a US passport, then just don't live in Canada, or any country with high taxes (or even any taxes). Its the US paperwork that follows you around the globe. If you have both passports, and live in Canada, you pay no US taxes cause Canadian taxes are higher. However, if you head to the Bahamas, while Canada could care less about your income, the US will want a piece of it.

kooltrader · Apr 25, 2006

Quote from dandxg:

I don't belive that is correct. If you trade under an LLC or IBC then you are an employee of the LLC or IBC, you aren't self employed. I could be wrong though. This requires sound legal advice though.

yes, this is true too, but i was asking about teh case of self employee.I think I read on irs that you have to pay SE tax.Anybody ?