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how to save a tax from capital gains legally?
- Thread starter trend2009
- Start date
Quote from stevenpaul:
You hit upon another interesting solution when you mentioned appointing your trading account to an offshore entity. I don't know how I could pull that off, as you have to be able to trust other people, and I just don't. But, if you wanted to give it a whirl, you'd have to set up a non-foreign controlled corporation, meaning that at least 51% of the shareholders are not US citizens. You can certainly pay lawyers in Panama or Belize to take a majority shareholder status of your corporation, then open a trading account in the name of this corporation and put your money in it, but aren't you taking a big risk that these majority share-holders will abscond with your capital at some point? They would have the legal recourse to do so.
The objection you raised is not a problem, if you have a brokerage account outside panama which only you know the password even though you are a minority shareholder its you who are really in control so they can do nothing about it. The actual problem for a US citizen is something called 'controlled foreign company' and its rules which makes it hard for you to dogde the tax but I'd think its still possible with highly complex structures
Become an Ordained minister and open up a Church. Then that money is the churches money and used to pay your Salary as a Reverend plus the expense of the church.
Look at Benny Hinn and all those billionaire Reverends living tax free.
Look at Benny Hinn and all those billionaire Reverends living tax free.
Uh, a password doesn't mean anything.Quote from Daal:
The objection you raised is not a problem, if you have a brokerage account outside panama which only you know the password even though you are a minority shareholder its you who are really in control so they can do nothing about it. The actual problem for a US citizen is something called 'controlled foreign company' and its rules which makes it hard for you to dogde the tax but I'd think its still possible with highly complex structures
Whoever the majority shareholder is, if they fax a signed request to your brokerage firm looking to:
a) add person Z as a signatory,
b) withdraw all funds in the account
... how can your brokerage firm legally refuse their request? What's your legal position? They promised?
Quote from stevenpaul:
Now, having created a trading framework in which one can only be taxed a maximum of 23% federally, the next step is to establish residency in a tax-free state, such as Washington, Nevada, Texas, Tennessee, Florida, and others,
States with no income tax just find other ways to generate tax revenue. You can avoid income taxes by living there, but you can't afford taxes.
Quote from monkeyc:
States with no income tax just find other ways to generate tax revenue. You can avoid income taxes by living there, but you can't afford taxes.
I'm afraid I don't follow. The cost of living in Washington, Texas, and Tennessee is way lower than that of California, it seems to me (whether you're talking real estate or even eating out). What are these hidden expenses of living in the tax free states?
Good to know. I hadn't looked into property taxes, as my plan is to rent a second pad in the tax-free state.