Dual residency: Open account as foriegn or US trader?

Discussion in 'Professional Trading' started by cunparis, Nov 3, 2008.

  1. Daal


    yes. dont own the offshore entity!this way the taxman cant try to tax the earnings of the company since they dont belong to you(100% legal), you pay tax on your salary and the company can compound tax free. anyone who thinks its not possible is a scared fool who believes tax revenues services propaganda
    #21     Nov 5, 2008
  2. This US taxation policy is rediculous. I know Americans who have never lived in the US and who have never declared a US tax return. I have no idea what would happen to them if they one day decide to live in the US.

    I've been declaring my taxes even though I live outside the US, but my income is covered by the foreign income exclusion.

    The idea of the US worldwide taxation is a bit repulsive. Imagine that I start a business in another country and start making millions. Why should I send 35% of that back to the US? It really doesn't make any sense. I wonder how many Americans give up their citizenship in exchange for keeping their money? I know one famous trader who got busted for tax evasion and he's now living in Australia. Not sure if he'll ever come back to the US or not.

    Overall I'm interested in different possibilities, and whether they're legal or not it doesn't matter for the sake of discussion.
    #22     Nov 5, 2008
  3. This makes perfect sense and seems to be completely legal. The compounding of the 35% could be very important over 10 years or more. But one day all that money is in the account and it has to come out. And then one would either revoke citizenship or pay the tax man. :)
    #23     Nov 5, 2008
  4. henry76


    I believe you can become a resident of Panama ( basically no tax ) without any obligation to live there permanently, though you may have to visit to start things off .
    #24     Nov 5, 2008
  5. Daal


    I gladly pay the tax man, as a long its on my schedule. but the bottom line is that the CFC garbage can be beaten
    #25     Nov 5, 2008
  6. Aren't Spain taxes higher than US?
    If so, this is a no-brainer, use your US nationality.
    #26     Nov 5, 2008
  7. I don't live in Spain, but most European countries have a lot more tax than in the US. I'm not sure how that relates to capital gains taxes.
    #27     Nov 5, 2008
  8. yes, that's legal, but it's not as easy as you make it sound. you can't do it with a spouse or family (related persons rule). so the only option is to use non-us citizen/non-resident friends/associates. you would have to have no stake in the company at all.

    doable, but here's some problems with that. 1) the foreign person would be liable to their countries taxes if any 2) you would have no stake in the company, so if your partner decided to withdraw all the money, you'd be fucked... can't really sue for money that's 'not yours' *wink *wink.

    anyway, moral of the story is with illegal, it's easy and it's great, but the risk/reward just sucks. the odds of getting busted in the future are high, even lichenstein got shook down recently. i suggest all of you with your 'secret accts that nobody knows about' read about what happened there:

    #28     Nov 6, 2008
  9. I agree the US worldwide policy is ridiculous. Criminal actually, gives one the feeling of a prisoner rather than a free person.

    Re: your friends: if they live in countries with tax information sharing with the US, then most likely they'll receive notice sometime after returning that they owe backtaxes with penalties and interest. if it's significant enough they could be arrested, but i think it would be possible to get off on ignorance there. penalties and interest can bankrupt though.

    RE: expatriation, about 3-500/year do it. it's the one full proof way of not getting into any trouble. just beware of the 'exit tax', sad i know:

    #29     Nov 6, 2008
  10. examples?
    #30     Nov 6, 2008