avoiding taxes

[dac8555]

Quote from thecalip:

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.

"making enough" has nothing to do with it. i ahve an offshore account in the bahamas trough BAC San Jose, the costa rica branch of the Credomatic corporation...they are big through latin amerca.

I opened the account with $1000, a current bank reference, and my US passport. there is a minimal annual fee to maitain the account..something like $5. i can access the money from anyhwere in the world.

The bahamas have very liberal banking laws which give the account holder a lot sof rights to privacy. My non-us company, created with my offshore account, does not have to report taxes to the US.

and YES WORRY ABOUT TAXES. 30-40% is a LOT of money. imagine you make an instant 35% return on your money...that is what managing taxes does for you.

 

[dac8555]

Quote from Jayford:

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.

you dont have to renounce your US citizenship to have RESIDENCY in another country. I am a US citizen, travel on a us passport, but do not have us residency.

 

[dac8555]

Quote from Cheese:

There is a gigantic amount of horsesh*t talked about tax avoidance. You can legally avoid taxation.

Of course cheating and tax evasion is just plain dumb ignorance as much as it is opening yourself to be found out for breaking the law.

true. lots of people do it al the time, you can control taxes to a point without breaking the law.

however, living in the US, with US accounts as a US citizen, and not operating under business structure...your options will be very limited.

good luck.

 

[Jayford]

Quote from dac8555:

you dont have to renounce your US citizenship to have RESIDENCY in another country. I am a US citizen, travel on a us passport, but do not have us residency.

That doesn't help you avoid US taxes though, so what's the point? You pay US taxes no matter where your residency is, unless you are paying a greater amount in your resident country. A change in residency will get you out of any state taxes, but not federal.

 

[Jayford]

Quote from dac8555:

not true. if you live overseas more then 11 months out of the year the first 8-k is tax exempt, no matter where the earnings come from.

True, but the rest is fully taxable. If you are living overseas just to avoid taxes on your first 80k, well, thats pathetic. If you are only making 80k total, you are saving about 20 grand to not be in your home country.

If you want to be in another country anyway, then that's another point entirely.

 

[dandxg]

Quote from Jayford:

That doesn't help you avoid US taxes though, so what's the point? You pay US taxes no matter where your residency is, unless you are paying a greater amount in your resident country. A change in residency will get you out of any state taxes, but not federal.

I believe you are correct Jayford. Did you have to pay US taxes trading from DR or did DR taxes amount to more? I read one of your threads.

Here is the website for tax exemption, forget the cheesy sombero, good info though

http://www.taxmeless.com/page2.html

 

[ethos]

Quote from Jayford:

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.

This won't help much. You still have to pay US taxes for 10 years after renouncing your US citizenship. There is special provision for that.

http://www.hodgsonruss.com/article_462.html

 

[Jayford]

Quote from dandxg:

I believe you are correct Jayford. Did you have to pay US taxes trading from DR or did DR taxes amount to more? I read one of your threads.

Here is the website for tax exemption, forget the cheesy sombero, good info though

http://www.taxmeless.com/page2.html

I wasn't in the DR long enough to avoid any US taxes. You have to be out of the US for 11 months in any 12 month period. Living in the DR really got to me after awhile (electricity outages,shitty internet, absurdly humid, and hookers everywhere, very aggressive ones). That said, the beaches and waves were awesome.

Jay

 

[wareco]

Quote from Longhorns:

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

Good riddance.

Not too damn much to be proud of lately IMO.

 

[jem]

Joe trader was correct.

In the old days it was quite clear. You could "reclassify" the LLCs statements which called your gains income and explain that they were gains due to appreciation of assets. A guy in our llc was audited and went into the IRS audit with a well researched explanation.

Part of the argument was that we were not dealers selling to the public and that the accounting firms doing the statements were Chicago accounting firms who were accustomed to doing work for Chicago floor traders and dealers.

We basically said that these accountants did not have the final say when it comes to classifying income. The IRS agent was friendly checked with his boss and agreed with my friend. No fica was owed. He also agreed that my friend was properly a marked to market professional so he could offset his gains with his losses.

It was really very clear when you were trading NYSE stocks with a specialist.

Now it might be a little less clear.