Keeping Your Winnings Secret, Legally- HOW?

Discussion in 'Professional Trading' started by Batterup, Mar 18, 2006.

  1. Ok, hypothetical situation. You daytrade for a living, you want to keep it a secret how much you make. You fully intend to pay proper taxes on all income but not revealing your identity.

    The closest answer i can come up with off the top of the head is to have the account in another persons name, with their permission, natch.

    Any other suggestions? Any ways to do this as a US citizen without leaving the country etc?

    The only legal angle i could think of where the IRS would feel slighted would be: If i or anyone else combined
    "INCOMES" then the person filing the combined tax statements could receive a good print for that years income thus inflating the later payout of social security for said individual. That could be construed as fraud.

    LEGAL as an eagle......there must be some ways........:cool: :)


    PS, the tax statements would not be COMBINED, the person filing would be shown as the income generator, i would remain out of picture entirely. The brokerage account would also be in that other name. (TRUST would need be in this arangement)
     
  2. Assuming the "trust" issue is addressed, how would you then take possession of the funds from this other person later on without risking some type of income/transfer tax later on?

    Isn't money taxed when passed from one party to another?

    As for SS, are you going to be paying the 17%? SS tax yearly?
     
  3. I don't think there is a need to hide your identity completely. What you want to do is to legally separate your trading profits from yourself. For this purporse I believe setting up a corporation or a trust fund will do it.
     
  4. Trade under a corp. entity, LLC, etc. I do it now, for increased tax write offs, but you could incorporate in a state where they don't divuldge corp. officers info. You will have to do your homework, but I would start with Nevada and New Mexico, maybe even Wyoming.

    To be on the up and up you would then have to register as a foreign corp. in your own state, assuming you don't live in state you incorp.This may trigger info being revealed. Like I said this will take research. There are a couple of people that seem on the up and up when it comes to Nevada.

    One is www.bulletproofasset.com and the other is Nevada Corp Planners, check google. I have spoken to NCP so I can tell you they tell it like it is, no BS like so many other Nevada cop inc. companies who want to promise you the moon and stars to get your cash.

    Can I ask why you want to be so low profile? Is someone after you or your money? Some people say JJ Luna who wrote Howtobeinvisible is paranoid, but he is the best at privacy I have seen. His website is howtobeinvisible.com.

    Good luck to you.

    Dan
     
  5. Thks, will follow up on these..:D

    Will check back later, thks again.

    Yes, the SS tax would be paid.
     
  6. Banjo

    Banjo

    You need to better define the reason for doing this as the anwers will vary depending on the reason. Do you have an ex wife that may attempt an atttack on funds, did she have children by another marraige that you adopted and are demanding college tuition etc. Are there judgements against you or are you expecting one? It can get complex depending on the situation.
    I can understand why you wouldn't want to be specific on an open forum,lol.
     
  7. Actually the main reason is knowledge it IT IS POSSIBLE. I assure i have no problems from either ex............:D

    No child support problems, alimony etc. Judgements are not in sight etc.

    Speaking about x- wives, the last one said: You think way to much...........:D

    I like answers before problems come up...............:cool: That comes in handy also for trading..............If i were a General leading an Army into battle i would like to know my exit strat just in case the enemy gets the best of me, then i can fall back, regroup and fight another day.
     
  8. Banjo

    Banjo

    The simple answer, considering that you are only trying to obsfucate your net worth to any prying eyes and not attempting to beat the tax man , is to take the profits and open a numbered Swiss bank account. They will ask you if you are evading taxes in your country or if the money is the result of illegal activities. It's that simple. Hiding your own money is not a crime, just don't get alzheimers. The only time the US govt will demand info from the Swiss is if any of the above violations are percieved. You can have the profits wired from the broker to the Swiss bank. They will in essence be untouchable by any one but you. If you want to break the paper trail left by the broker wiring to the bank you can have the profits wired to your bank here , take the cash , 10k is allowed now I believe, and deposit in the Swiss or their branch in the Carribean. No paper trail as nobody knows what you did with the cash.

    edit, the idea of involving others is a bad one, far too many loose ends.
     
  9. are you saying you do not want the Irs to know who you are but you will pay all legitimate taxes?

    or you dont want the trading community to know who you are?

    one way is to set up a corporation in a state like wyoming or nevada that do not share stockholder information with the irs and have the agent in that state be your officers of the corporation. then you as a stockholder will never be known. the disadvantage is that you would only be able to do this as a "C" corp and "C" corps don's offer the best advantages to trading. Any other pass through entities, your identity will be know to the irs, unles you go back to your original idea of having a friend as the front.
     
  10. There is just no way to achieve this....you will be discovered and then your mission in life will be to try and keep your money...instead of making it....everybody is on the "take" and they will find you!
     
    #10     Mar 19, 2006