Living on a boat and avoiding taxes

No capital gains tax is extra cool.

But you have a fu*ked up time zone to trade the Dow.

 

If you live on the boat and you remain in international waters the entire time, then yes you may be able to legitamately avoid paying tax.

However, you can forget trading unless you plan to send your trades via radio. There is no broadband in the middle of the atlantic.

Runningbear

 

Is there a map of where international waters begin and end...sort of a territory overlay of the worlds oceans? It gets pretty rough out there, doesn't it?

If you live on the boat and you remain in international waters the entire time, then yes you may be able to legitamately avoid paying tax.

 

A life getting tossed around in a fudging boat is really ridiculous.

Simple answer: make valid tax avoidance arrangements for your affairs or go live in a tax haven.

 

You failed to read this:

PS: no problem if you're not making any profit trading.

 

Not sure if anyone has mentioned this but here are some ideas that may be useful:

1. Boats are damn espensive to maintain.

2. You need more deductions. Start financing debt - specifically real estate of any kind.

3. Interest is deductible and your equity will grow.

4. You don't have to declare rent if you chose to rent out the property and you now have a depreciating asset that pays for itself.

Structured correctly, the above should allow you to pay VERY little in taxes.

 

Isn't the best way to avoid taxes...the legal way?

with your suggestion...well anybody can avoid taxes by not declaring or declaring more expenses and just not with RE...I think this thread was more about discovering a legal loophole (s).

Michael B.

4. You don't have to declare rent if you chose to rent out the property and you now have a depreciating asset that pays for itself.

 

Sweet.
Of course I read that. Didn't you see it only said 'could'?
And no capital gains tax.

 

You are right, but legal loopholes usually get shut down if enough people exploit them.

I was making a comparison between two types of depreciating assets: boats and homes. Not sure if boat loans qualify as tax deductible (I paid cash for mine).

From my experience, having a high tax deductible interest to income ratio along with depreciating assets are the best ways to avoid high tax brackets. This assumes however that you have high income.

I apologize if this is off topic.

 

How would you not have to declare rent, since it is income? I don't know too many people who pay their rent in cash.