Bahamas
- Thread starter metooxx
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Metooxx
Do the Nassau Bahamas area have more traders and a better infrastructure? I'm been to both Freeport and Nassau (brief vacation) and Nassau seem to be a much more exciting place than Freeport.
Do the Nassau Bahamas area have more traders and a better infrastructure? I'm been to both Freeport and Nassau (brief vacation) and Nassau seem to be a much more exciting place than Freeport.
metooxx was kind enough to spend a little time on the phone with me the other day talking about the bahamas--- he's got a thick chi-caw-go accent, so he must be the real deal 
. but seriously, he explained to me what's involved -- to summarize a few general points he talked about:
- if your not profitable, forget it;
- you need to form an int'l corporation (ibc) and give yourself a salary. this is a means of converting the unearned income from trading activity (capital gains) into earned income for which the irs has appropriate exemptions if you pass the bona fide resident or physical presence tests;
- hire your wife for an additional $80,000 income exemption (total 160,000 usd); not clear on what you would do if your trading activity generates more than the 160,000/yr, but thats not a problem for me at present
- establish offshore brokerage accounts, or, us-based accounts as a foreign entity (the former is preferred -- although I think this offshore preference is more about privacy and reduced risk of seizure than it is about the irs taxation rules per se -- not sure);
- metooxx warned about bahamian banks -- i got the impression he doesn't use them for trade account funds -- i am not sure which country his accounts are based in, but he seemed concerned about bahamian banks;
- he mentioned some means of enabling yourself to make more frequent entries into the us than the irs tests would seem to allow-- i am fuzzy on that point;
- you need to establish a resident with no right to work status in the bahamas and deal with those authorities. he was clear that questions will be asked and you must make them comfortable with your activites, i.e. "you manage your investments"
- watch out for the heavy duties on goods you buy or bring into the country. big ticket items like that new lexus are problematical.
i would probably want to get outta there too during the hurricane season :eek:
informative! thanks metooxx.
. but seriously, he explained to me what's involved -- to summarize a few general points he talked about:- if your not profitable, forget it;
- you need to form an int'l corporation (ibc) and give yourself a salary. this is a means of converting the unearned income from trading activity (capital gains) into earned income for which the irs has appropriate exemptions if you pass the bona fide resident or physical presence tests;
- hire your wife for an additional $80,000 income exemption (total 160,000 usd); not clear on what you would do if your trading activity generates more than the 160,000/yr, but thats not a problem for me at present
- establish offshore brokerage accounts, or, us-based accounts as a foreign entity (the former is preferred -- although I think this offshore preference is more about privacy and reduced risk of seizure than it is about the irs taxation rules per se -- not sure);
- metooxx warned about bahamian banks -- i got the impression he doesn't use them for trade account funds -- i am not sure which country his accounts are based in, but he seemed concerned about bahamian banks;
- he mentioned some means of enabling yourself to make more frequent entries into the us than the irs tests would seem to allow-- i am fuzzy on that point;
- you need to establish a resident with no right to work status in the bahamas and deal with those authorities. he was clear that questions will be asked and you must make them comfortable with your activites, i.e. "you manage your investments"
- watch out for the heavy duties on goods you buy or bring into the country. big ticket items like that new lexus are problematical.
i would probably want to get outta there too during the hurricane season :eek:
informative! thanks metooxx.
I would imagine that many people would be interested in learning
what their living expenses would be compared with the USA.
What would one be up for during the first year by way of house rental, living expenses, trading expenses (office rent, live data transmission etc).
Would you mind giving us some idea Metooxx ?
Thanks,
freealways
what their living expenses would be compared with the USA.
What would one be up for during the first year by way of house rental, living expenses, trading expenses (office rent, live data transmission etc).
Would you mind giving us some idea Metooxx ?
Thanks,
freealways
Housing is cheap compared to Chicago, 3 bedroom townhouse on the ocean in a gated community is $2,500; you can get stuff all the way down to $600.
Food is more, say 50%; restuarants are the same as Chicago or slightly higher, a lot less than Nassau.
Trade out of your home; easier and no questions.
Data and connectivety is the same price and quality as Chicago.
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