I'm sure there's a thread on this, but I looked for an hour and couldn't find it. Yesterday, I just wrote the IRS a check for 40% of my account. It's crazy. I then just signed away another 10% of my account for my first quarterly payment this year, and another 5% of my account for state taxes. I basically lost a bit over 50% of my account in one day to taxes. There has to be a better way, there just has to be. Doesn't the government realize that taxing me at 5%, they make more in about 3 years than taxing me at whatever their top rate is now? Anyway, some people in my chat room were telling me that I could form an offshore type thing and only pay taxes on the money I take out of my account to live on. Is this true, do any of you know about this so I can compound my capital without loosing half of it annually to taxes? I know soros does something like this, and I hope to do so too. But I want to know some details before I spend a few hundred dollars on a consultation with my accountant.
probably have to set up a llc, cost some bucks, but from what you have said you got em, 55% of our nations taxes come the wealthiest 5%. i would talk to a good securities lawyer. note, not a lawyer, a securities lawyer. good luck, let me know how it goes. later
Not difficult at all. You set up an IBC registered in a tax haven (such as BVI) then that entity opens an acct with a broker and appoints you as the trader.
take a look on http://www.com-exp.com/eng/jur_bvi.htm An IBC is subject to the following restrictions on trading and business activities: A Company does not have the right to trade within the British Virgin Islands or own real estate there; A Company is not permitted to engage in banking, insurance, assurance, reinsurance, fund management, collective investment schemes, trust management, trusteeship, giving investment advice or any other activity that would suggest an association with the banking or insurance industries; It doesn't mather if you want to do it for your own or for clients. I had the same idea and wrote this guys an email how I can do open a firm who can do trading on the nyse. well it's possible but it will cost you around $40.000,- but if annybody had a good idea, let us know
It will not cost $40k, between $5 - $10K is probably more like it. The Bahamas are a better idea than BVI.
Bahamas, Bermuda, Turks + Caicos, whatever, research the location they have some differences but it will basically cost you around $2000 to setup the IBC and then a yearly fee of $500 to keep it in order. Nothing difficult nor complicated. The IBC would not ofcourse engage in banking, insurance, etc. These laws are setup to reign in money laundering. The IBC would act as a holding company.
cnbc just ran a piece on the irs cracking down on off shore accounts.showed a doctor who got 5 years for setting one up that was illegal.tread very carefully here.as i understand it except for some small income exclusions the irs considers all income you make taxable no matter where you are based if you are a us citizen.