Losing the deposit or willingly paying US income taxes isn't a problem, but what legal issues w/this? Basically, can some recommend an attorney with expertise in this area?
US citizen trading w/offshore prop firm
- Thread starter esc_trader
- Start date
Call the IRS and asked them!
Read this thread https://www.elitetrader.com/et/threads/has-anybody-got-paid-from-nevis-trading.306923/page-5 before you go on an adventure.
Like I said, the safety of the deposit is not an issue. Let me save people some time, in writing the 'sending your money offshore is risky' responses.. Let's say that there is no deposit that would need to be made with this trading group. There isn't any deposit to lose.
However, you're trading offshore and what is the applicable, not necessarily just tax but legal implications? I can google prop trading lawyer, but thought someone here may know someone to refer. Thanks in advance.
If you are American permanent resident or green card holder then you are taxed at American rates wherever you derive income from. The devil is in the details as you may have to pay the difference to local tax authorities abroad if their tax rates are higher than US rates. Much better to investigate other schemes, such as not being paid income but having all generated capital internally reinvested into equity. You might be able to get a much better tax deal that way but would have to cover your living expenses in the meantime from other sources. But this is a complicated issue and as you mentioned you definitely need to consult professionals especially as US resident. Maybe someone can recommend a good consultant/lawyer. Good luck