Well, now that I think about it all of my accounts have been based overseas so maybe metooxx is right ... In any event I would think most large brokers could simply move your US-based account to one of their overseas subsidiaries. This shouldn't be an over-riding consideration when deciding where to reside.
i thought it was more involved. even the irs exemption on the first 80,000 a us citizen earns overseas/offshore would not include unearned income, right? so, capital gains are fully taxable whereever you are in the world. that would indicate to me that you need to use some sort of int'l business to trade behind. so, you form an ibc and open an account with a us broker that accepts such foreign entities, or, trade the us markets with an offshore broker. is that the gist of it?
Apparently so. From Form 2555 instructions: " Foreign earned income does not include ... interest, ordinary dividends, capital gains ..." but does include wages, salaries, professional fees, & other compensation. Guess I have some work to do. Uggh ...
metooxx please elaborate a little... do you need an offshore company and an offshore broker or just an offshore company and your us broker? do most us brokers accept foreign corporate accounts? i mean suppose you like and trust your particular (remote, online, daytrading) broker and would like to continue with them? can any u.s. joe schmoe simply go to the bahamas, form an ibc, rent a condo and trade?
thanx for your questions weewee. I have the same questions....but I am not ready to load up the llama and move to bahama.......so I am relunctant to PM metoxxic... Michael B.
1) You have to be offshore; 2) A foreign broker is better, most just introduce but it cements your offshore status; 3) You should have an offshore company; 4) You enter into an employment agreement with your offshore entity to recharacterize your capital gains or ordinary income into earned income; 5) You should have some type of "official status"; 6) you need to be domiciled in a no tax country.