Setting up offshore or moving to trade

[yxy]

Yes, it's true that a greencard holder also has to pay taxes even if they don't live in the U.S.

However, I think they (both a citizen and a greencard holder) won't have to pay taxes up to something like $80,000 of income and capital gains that they make outside the US (forgot the exact amount). You would have to pay taxes on anything above the amount.

I checked this with two attorney friends who live outside the country last summer.

 

[arealpissedgoy]

Quote from Ialwayslearn:

If one were looking for tax savings on trading income by relocating outside of the US, what are some considerations.

Do you give up citizenship? Have dual?

Any thoughts on any aspect of this.....this is wide open for discussion.

Get a Panamanian citizenship ( buy vacation property ), and use that to structure your primary investment vehicle / accounts.

 

[dandxg]

I am not going to research all night, you guys can have at it, but the 10 year tax after leaving is designed to catch ppl. with over 2 million in net worth or more leaving the US. Unfortunately, not many on this thread have that problem, including me for now.

And yes the exemption is 80k per person or 160k per couple with allowances for living expense writeoffs incured with overseas.

It's easy to get around the above if you are truly serious. Sell everything you have whilst in the states, convert to cash, set up offshore and intially report transactions legally to IRS and then just move the rest. Countries like Switzerland and other tax havens will tell the IRS to pound sand on seizure, unless you are serial killer, drug dealer, or terrorist. Tax evasion isn't even a crime in Switzerland.

 

[Vinny1]

Quote from dandxg:

I am not going to research all night, you guys can have at it, but the 10 year tax after leaving is designed to catch ppl. with over 2 million in net worth or more leaving the US. Unfortunately, not many on this thread have that problem, including me for now.

And yes the exemption is 80k per person or 160k per couple with allowances for living expense writeoffs incured with overseas.

It's easy to get around the above if you are truly serious. Sell everything you have whilst in the states, convert to cash, set up offshore and intially report transactions legally to IRS and then just move the rest. Countries like Switzerland and other tax havens will tell the IRS to pound sand on seizure, unless you are serial killer, drug dealer, or terrorist. Tax evasion isn't even a crime in Switzerland.

If my wife and I relocate to another country and earn $160k/year and all that earnings is from interest, dividends and capital gains and not a salary (since we wouldn't be working at a job in another country), are we still able to exempt the first $160k and not have to pay the U.S. IRS taxes, even though all the earnings are interest, dividends, and capital gains.

 

[Vinny1]

Quote from PARACLESE:

that is true. this topic has been covered. you are liable after 10 years of renouncing citizenship (hear say). I am a greek national and never obtained citizenship since all do believe I am a citizen, there is no real need for it. I am about to bounce, and believe me, I will not look back. I am hitting the bid quicker than you can say 20 bid at even. and I am more american than most americans(hopeful wishful fairy tale believers that look to big govt for their fix). I am a true egalitarian, an agrarian republican. Jefferson would cringe at what this country has turned into. But most americans would not know that. They should but they do not. Soo....... SOLD to the blue guy in the corner!!!! I dont know how much longer he can keep on holding his breath but hes good... he is good.

Just out of curiosity, what complaints do you have about the U.S.?

And you are right, most Americans don't know what is going on. They are too wrapped up with American Idol, Dancing with the Stars, and Paris Hilton.

 

[spinner]

See Trader Daily article on world's best trading cities:
http://www.traderdaily.com/magazine/article/7744.html

 

[Surdo]

Quote from spinner:

See Trader Daily article on world's best trading cities:
http://www.traderdaily.com/magazine/article/7744.html

This article does nothing to address the taxation of US residents overseas. Did you bother to read the OP's first post or the article?

el surdo

 

[mss]

Quote from Vinny1:

If my wife and I relocate to another country and earn $160k/year and all that earnings is from interest, dividends and capital gains and not a salary (since we wouldn't be working at a job in another country), are we still able to exempt the first $160k and not have to pay the U.S. IRS taxes, even though all the earnings are interest, dividends, and capital gains.

Generally, the exclusion you are talking about here only applies to earned income (911(b)(1)(A)).

 

[Bob111]

Quote from PARACLESE:

no way!!!! that means.... wait thats bullshit. i have to check this for myself. oh man are these fuckers good. you are bullshitting. I have to check this out. very convincing. taken in, taken in!!!!

http://www.irs.gov/businesses/small/international/article/0,,id=164371,00.html

If you have a U.S. green card, you are a lawful permanent resident of the U.S. even if you live abroad. This means you are treated as a U.S. resident for U.S. income tax purposes and you are subject to U.S. tax on your worldwide income from whatever source derived.

got a green card-resident, been legally over 180 days-resident.
i personally give up on idea of reducing(not hide) my taxes. there is no legal way to do that, once you are defined as resident. all those 80K deductions are bs,you have to qualify for it and trust me-it's not going to be easy. IRS knows about almost every possible way of tax abuse. after 9/11-forget about it,if you are in US. i did my research, I talk to numerous CPA's, lawyers-they all says same thing-forget it.of course there is some ways like set it up on local ppl name, and trade it, but even getting your money out will be VERY challenging.
put some of your money-not worth it, put all of it-too much risks. imo-f**ck it,unless you know exactly, how it's done and you are comfortable with risks you are taking. i prefer good night sleep @ home,with my family,not in panama,dubai or state prison

 

[rcanfiel]

Quote from ggoyal:

people say that you could move to panama city. but the thing is that if you are a US citizen, you have to pay taxes regardless of where you live. I know so because I lived in India for a couple of years and my dad had to pay taxes on his income(he too lived in India). But obviously if you have a busienss dealing with a lot of cash, obviously you don't have to then.
But for traders, THEY will know about your income and you will be taxed on it. I don't understand then how it is an advantage to live in panama or antille or bahamas. it would be nice though. someone please explain.

"But obviously if you have a business dealing with a lot of cash, obviously you don't have to then. "

Nice words to say from prison... You would be amazed at the reach of the government.