Off shore trading

Discussion in 'Professional Trading' started by praetorian2, Apr 12, 2002.

  1. Cesko


    Have you ever read Soros ideas about world government etc? My conclusion is he is either self-serving scumbag or an idiot. We can,I think, exclude an idiot.
    #51     May 18, 2002
  2. I could care less about Soros views on politics etc. What I was trying to highlight is that folks like Soros owe part of their success because they take advantage of a legal loophole that the IRS is fully aware of - offshore trading. If it works for Soros - it should work for us. :)

    "Offshore funds like Quantum offer an investment adviser like Soros an amazingly rich deal. As long as he stashes his management fees and capital gains offshore, they are allowed by the IRS to compound, essentially tax-free!

    Guys with offshore funds typically keep their fees and capital gains abroad for at least 10 years, in some cases for as long as 25 years. That is the functional equivalent of tax-free. Given that Soros has had years when he earned hundreds of millions of dollars, this unique opportunity to compound beyond the reach of the IRS has been critical to his fabulous self-enrichment. This is the stuff of dreams for the average millionaire, let alone the rest of us. Soros and dozens of other U.S.-based investment managers enjoy what is truly a high-end loophole."
    #52     May 18, 2002
  3. I have 2 questions, If I want to get the benefits of fla/nv residence or whatever state is taxfree, what are the minimum requirements that I need to appear as though I live in that state. Is renting an apartment, voting in an election and switching my drivers lisence enough? What else would I require?
    Then the same question applies to if i were to try to get a residence in a tax free country and get the 80k tax deduction. Would I need much more than that. What's the minimum ammount of time that I would need to spend in that country? DO I need to be in a S corp for that to work, or just living there is sufficient.
    I am asking this b/c my gf is intent on going to law school and I am gonna follow her to whatever super high tax new england state she's accepted in. I need some other options.
    #53     May 26, 2002
  4. #54     May 26, 2002
  5. trdrmac



    Most states will have a test for residency that requires your physical presence part of the year. You should be able to find some good case law on people that have both residences in New York and Florida to give you an idea of how to handle your position safely.

    There may be other tests to establish full year residency like voting or switching your drivers license etc, where your income is derived, etc.

    Did you ever come up with a lower number on your taxes?
    #55     May 26, 2002
  6. Wirelessbull: Thanx a lot for those links. I just have a lot of trouble understanding all the legal code stuff. So to live overseas, you must be present for 330 days of the year. What is required besides going to the curcuit court of florida to establish residency there? I couldn't make much sense of it.
    #56     May 26, 2002
  7. praetorian2 - the 80k exclusion from income earned abroad looks next to impossible to receive if you are physically located in the United States. I agree - I'd hire a tax attorney before looking into establishing an offshore trading account to lessen the tax bite. George Soros is doing so legally so there is a way. And I'm pretty sure he doesn't spend all his time living in the Caribbean.

    Interesting site:

    I'll see what else I can find about becoming a resident of Florida and then living outside the state.
    #57     May 26, 2002
  8. Soros isn't an american citizen though.... Thanx for the info so far. It's very good.
    #58     May 26, 2002
  9. I think Soros is a naturalized American Citizen. So there may still be an opportunity for US Citizens to set up a legal offshore trading business to minimize taxes and that is compliant with IRS regulations. This is a very interesting subject - I've thought about doing the same myself. :)
    "He is an American citizen who escaped the Nazis as a Jewish adolescent in Budapest and emigrated to the United States in 1956, after graduating from the London School of Economics."
    "He sought political influence, both overseas and in the United States, and one U.S. diplomat called him "the only American citizen with his own foreign policy.""
    "As an immigrant to the United States and a naturalized American citizen, I have deep sympathy for those who come to this country in search of a better life."
    #59     May 26, 2002
  10. skrilla


    I saw this in today's IBD, this was the conclusion:

    "It'll cost $20,000 to $30,000....It's not cost-effective for anyone who plans to shelter under $1 million in assests. And that's a very conservative estimate. You probably need $5 million before it makes sense."

    This is from Ralph Anderson, SVP of Monetary Management @ Neuberger Berman. Basically the article stated everything already written on this thread. One thing it did mention was the use of credit cards and the compliance of the big 3 companies to hand over any information the IRS wants.

    I'm sure there are ways to go about it, just pay for good advice from an attorney and CPA.
    #60     May 30, 2002