Successful traders: why don't you move to a 0% capital gains tax country?

granville said:
Correct, state tax rates for these are zero but you still have a federal liability. Other states have zero tax rates also.

I'd love to retire in Wyoming, go fly fishing and hiking.
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After you retire, usually you do NOT pay income tax because you do NOT have income from labour. But you may have CapGain income from your asset after 65.

I guess that you better to check the Sales tax rate in Wyoming. After 65, most tax comes from living expense, not from labour. Am I correct?(I am not sure)

If so, you may prefer state with NO SALES tax. I heard Delaware is such cases.

For example, if CA is 8% of sales tax but NO SALES tax in Delaware, your expense might be different as much as 8% in your pocket.
For annual compounded expense from some fixed retirement, 8% per year makes huge amount for 30 years (from 65 to 95) although it is NOT as short as in 10 years or less.

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I can see 5% sales tax rate in Wyoming
as shown in http://taxfoundation.org/article/state-and-local-sales-tax-rates-2014

8% in CA, and ZERO % in DE. Furthermore, the link says that there is MORE local (Maybe by county or city) sales tax in addition to the STATE SALES tax, in 38 states.

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Also, if I ware you, I will check the home price in Wyoming as shown in
http://www.zillow.com/homes/recentl...3,-104.735413,40.624376,-110.33844_rect/7_zm/

Home price is some kind of reflection for the living expense. The higher the home, the more you pay, even if you bought it by all cash.
 
granville said:
Correct, state tax rates for these are zero but you still have a federal liability. Other states have zero tax rates also.

I'd love to retire in Wyoming, go fly fishing and hiking.
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Please note that MT has less tax than WY. If I were you I would check their home price since home prices is a major living expense, even if you bought it with all cash

I assume both states has similar fishing and hiking environment, although I never been there before.
 
jk90029 said:
I am not sure, but in Wyoming, there might be NO state income tax. I wonder if there IS FEDERAL INCOME TAX, same as other US citizen, isn't it?

My guess is that Wyoming want many people to move there. Lowering tax make him to come there.

There might be other states where there is NO STATE INCOME TAX, isn't it?

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Federal tax bracket is shown at http://www.bankrate.com/finance/taxes/2013-tax-bracket-rates.aspx

State income tax http://www.tax-rates.org/taxtables/income-tax-by-state / where there is NO STATE INCOME TAX , for example, Alaska, Nevada, Washington, Wyoming, Texas, Florida.
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In Nevada 0 state income tax is in the state constitution thus it would take a referendum to change it,,,,
 
Hong Kong is not a bad place for a successful trader as capital gains taxes are minimal to none, depending on the asset class you invest in. The city sports excellent medical services (that rival the quality in the US at a fraction of the cost), excellent schools, couple pretty good universities, you get pretty decent food. Only downside is the long humid summers and above all the exorbitantly high real estate prices and rents for the small place they buy/rent out for. I live here and trade and tax wise it makes a lot of sense.
 
volpunter said:
Hong Kong is not a bad place for a successful trader as capital gains taxes are minimal to none, depending on the asset class you invest in. The city sports excellent medical services (that rival the quality in the US at a fraction of the cost), excellent schools, couple pretty good universities, you get pretty decent food. Only downside is the long humid summers and above all the exorbitantly high real estate prices and rents for the small place they buy/rent out for. I live here and trade and tax wise it makes a lot of sense.
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Let me point out one that you may be wrong. As far as I know, There are ONLY TWO(?) countries which charge trading tax, while most countries like US and UK do not charge.

If I am correct, HK charges trading tax in addition to brokerage. Therefore it does NOT matter whether you makes profit or loss after each trade and roughly 0.3% trading tax every time. Although there is NO CapGainTax in HK, HK traders pay MORE TAX, especially if you trade frequently. But if you are a long-term investor, then you have a lot better tax-related situation than US/UK, since there is NO CapGainTax in HK.

For example, suppose we have initial seed of $100K and trade once every day, then in 240 days (1 year) you SHOULD pay tax for 100000*0.003*240 =72K. Therefore 72% of your initial prancipal goes to government EVERY ONE YEAR so that nobody can survive in the long run. / CAN YOU BELIEVE THIS?

Same is true for South Korea. Although MSFT Bill Gates pay CapGainTax (roughly 20~40%) to US, SamsungElectronics share holders has almost no CapGainTax. Furthermore, I heard that in mainland China, their trading tax reduced from 0.3% to 0.1% few years ago, with NO CapGainTax (I am NOT pretty sure).
 
Many low tax countries have relatively high costs of living. Monaco, Hong Kong, Singapore all will put you back $10k plus a month if you want to drive a decent car, have a modern 1,500 sqft flat in a decent area, go out a couple times a month. If you're considering becoming an expat for tax reasons you need to be paying 6 digits in taxes annually from trading first to make it economically feasible, otherwise stay where you are.
 
Butterball, there are a lot of countries offering close to zero tax: Uruguay, Portugal (from 2013 does not tax income outside Portugal, but are conditions), HK, Singapore, Caribbian countries. This is just to name a few. Point is, you can use a lot of trading vehicles to minimize cost. Unless, of course, you're patriotic and support big welfare and big government :)

Even Norway, where I come from, you can trade EU stocks through a company and pay no taxes until you pay yourself a dividend.
 
a spell check sometimes works wonders :-)

You are right that there is stamp duty charged on HK listed cash equity transactions (not sure about warrants as I do not trade any). But this whole debate was about capital gains tax. While property and certain other asset classes are taxed via various schemes most financial asset classes are capital gains tax exempt. So, as long as you do not trade HK stocks you are not subject to pay stamp duty. By the way, you pay the exact same stamp duty if you trade HK stocks from anywhere else in the world, and so do you to trade Korean stocks and stocks in a variety of markets as well. As you can see this is not a debate about stamp duty but about capital gains and whether it makes sense to trade in a specific jurisdiction to minimize taxation exposure.

jk90029 said:
Let me point out one that you may be wrong. As far as I know, There are ONLY TWO(?) countries which charge trading tax, while most countries like US and UK do not charge.

If I am correct, HK charges trading tax in addition to brokerage. Therefore it does NOT matter whether you makes profit or loss after each trade and roughly 0.3% trading tax every time. Although there is NO CapGainTax in HK, HK traders pay MORE TAX, especially if you trade frequently. But if you are a long-term investor, then you have a lot better tax-related situation than US/UK, since there is NO CapGainTax in HK.

For example, suppose we have initial seed of $100K and trade once every day, then in 240 days (1 year) you SHOULD pay tax for 100000*0.003*240 =72K. Therefore 72% of your initial prancipal goes to government EVERY ONE YEAR so that nobody can survive in the long run. / CAN YOU BELIEVE THIS?

Same is true for South Korea. Although MSFT Bill Gates pay CapGainTax (roughly 20~40%) to US, SamsungElectronics share holders has almost no CapGainTax. Furthermore, I heard that in mainland China, their trading tax reduced from 0.3% to 0.1% few years ago, with NO CapGainTax (I am NOT pretty sure).
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