i would like to find out if there is a legitimate structure out there that could be set-up in order for a trader to minimize if not eliminate taxes altogether. offshore corporations? would appreciate any advise in this matter. thanks.
thanks for the replies. runningbear, could you please elaborate? would setting up a corporation in the cayman islands for instance allow for the tax benefits?
Check out the many posts by user metooxx on this subject. Apparently it is possible. The gist of it is to create an international corporate entity in which you convert trading profits into earned income. Next, you stay out of the US for a long enough period of time to qualify for the foreign-earned income exclusions. In other words, what you basically do is move offshore and trade from there. Your physical presense on US soil prevents you from qualifying for the foreign-earned income exclusion, i.e. you must leave US soil.
Do a search for "offshore" here on elite trader. There is a lot of information already covered. Also visit this link http://www.offshore-protection.com/internationalFiduciaryStructure.html Runningbear
As far as you get the right advisory from the right people is nothing illegal .The matter is follow the right steps according to laws in this regard.
Dear Friend MarketSurfer, With all respect , why are you assuming that all the traders is this community are US citizens ? There's people all around the globe flying around here... However the issue is not taxes evasion or money laundry but tax reduction or advantages. Even inside the US you can create a corp legally in the sates of Delaware or Nevada that gives you tax advantages . You'll work the way to find a legal structure that can brings you benefits in the management of your assets. That's the deal.
I spent 2 years researching "tax havens" for a law firm specializing in "asset protection". In my opinion STAY AWAY from any of these plans. A good website for offshore scams is www.falc.com. BTW: the best(of the worst) haven was Nevis.