Does anyone know of any firm offering tax free trading? Are there any firms that will let you open an account with them and wire money to a bank in an offshore zone? Or are there any other alternatives to save $$ on taxes. Please let me know, greatly appreciate it.
First, even if you find such firm,(there are many off shore investment banks, Soros Fund is one of them....)you could be at odds with the IRS if you don't disclose it. You should consider moving to such haven like Lichenstein, Zug(Swizerland) or Bahamas etc. It's where YOU reside what matters not your money.
Andrasnm!!! I was looking for a firm with an electronic execution platform! Also I don't know if Soros fund actually does takes on independent traders, etc.... and gives them leverage and an execution platform. Also are there day trading firms in the Bahamas or other offshore zones that you mentioned? Thanks!
Predictor - andras is right. It wouldn't matter whether there was a daytrading firm in the Turks & Caicos that would take your account. If you failed to report your trading transactions at the end of the year, you'd be committing tax fraud. As andras said, it doesn't matter where your MONEY is - it matters where you are. If you're a US citizen, you're taxed on all your income anywhere in the world. Also note, the IRS monitors foreign wire transfers too. So if you wired a bunch of cash to an offshore account, the IRS would likely end up with a record of it. But frankly, even if you found an offshore broker to take your account - you'd be taking a big risk. They won't be SIPC insured and you could lose all your money overnight if they folded their tents and vanished. Now if you bought yourself Belizean citizenship, ... Good luck.
Predictor You mentioned "...are there any other alternatives to save $$$ on taxes?" Frankly, what you are trying to do is CHEAT on taxes. Why not just go ahead and pay your share of taxes? Personally, I don't mind paying taxes because that means I made money.
WOW. Is it true that if you trade the US markets living in Puerto Rico, you have no Federal income tax liability? Is there ANY tax liability with this scenario? tradeRX
There are a number or ways to trade offshore and get money in and out an offshore account using established bank without much fear of the IRS of losing your money through Bank default. Most of the major US trading firms accept International (Tax Haven) Account. Not to wave the flags but paying taxes is a privilege and most of the people who live in tax havens would kill to be an American citizen and live in the USA⦠and pay US taxes.
It looks like I spoke too soon.. I had heard that Puerto Rican residents pay no federal income tax, and that is true. However, they have their own tax system. I looked into it a little and found that their system is similar to the mainland, with deductions, etc. For individuals the rate is basically 20% of the first 50k and 33% of everything after that. For corporations earning between 75k and 125k it is $3750 plus 15% of the amount over 75k. It looks like the corporate tax rate, for all practical purposes, will never exceed 16%-17%. If your corporation makes under $75k, it looks like the tax is 5%. Check it out: http://www.puertoricocpa.com/pages/framesets/prtax_fs.html
I wonder why Politicians don't have this attitude. They are the second catagory to criminal activity who maintain offshore accounts. lol I have heard that it is most common after establishing a net worth of 10 millions of dollars. So, I guess when you have more than you'll ever use in your lifetime, and you already pay more than 99% of Americans, you get an attitude that its not fair. Jeffrey