Non-resident vs. citizen

ChrisM · Apr 15, 2003

Quote from okwon:

Not if you're a US citizen. The IRS doesn't recognize controlled foreign corporations. You may get tax credit for taxes you paid to another country, but you must pay taxes somewhere.

okwon, thx for insights. So, you say that foreign location can give you some tax break or no matter where you are, your tax dues will be about the same (more or less)?

metooxx · Apr 15, 2003

If you are non-US; you have the world at your feet ...

okwon · Apr 15, 2003

Quote from ChrisM:

okwon, thx for insights. So, you say that foreign location can give you some tax break or no matter where you are, your tax dues will be about the same (more or less)?

Foreign location can give you a tax break for 80k, as long as you're not getting taxed by the foreign jurisdiction. Actually, you could probably get little more using some good offshore accountants. You really need to get some expert advise though.

okwon · Apr 15, 2003

Quote from metooxx:

If you are non-US; you have the world at your feet ...

Without taxes to pay on trading, investing, and income in general, you would be at a huge advantage accumulating capital and compounding it into an enormous sum.

metooxx · Apr 15, 2003

Quote from okwon:

Without taxes to pay on trading, investing, and income in general, you would be at a huge advantage accumulating capital and compounding it into an enormous sum.

Huge is an understatement ...

ChrisM · Apr 16, 2003

Quote from okwon:

Without taxes to pay on trading, investing, and income in general, you would be at a huge advantage accumulating capital and compounding it into an enormous sum.

OK, so what`s the US interest to let foreigners trade in US markets ? Liquidity ?

EliteThink · Apr 16, 2003

Metooxx, I thought you still had to pay taxes from the bahamas still?

ChrisM · Apr 16, 2003

Quote from metooxx:

If you are non-US; you have the world at your feet ...

So...does it happen, that people give up of their US citizenship ?

okwon · Apr 16, 2003

Quote from ChrisM:

So...does it happen, that people give up of their US citizenship ?

I think it happens all the time. However, the IRS knows this happens and came up with an exit tax. If they determine that you are giving up your US citizenship for tax purposes, they apply a special tax which is a tax on your estimated income for the next 10 years. If you don't pay, you can never enter the US again.

Funny, I thought we lived in a free country.

ChrisM · Apr 16, 2003

Quote from okwon:

I think it happens all the time. However, the IRS knows this happens and came up with an exit tax. If they determine that you are giving up your US citizenship for tax purposes, they apply a special tax which is a tax on your estimated income for the next 10 years. If you don't pay, you can never enter the US again.

Funny, I thought we lived in a free country.

Old saying is ...is free as much, as it is. But many years ago I heard that foreign traders were subject to 30% of their funds in US brokerages to be freezed towards prospective taxes, is that true ?