Ok, let me re-state. Traders make a lot of money. Trade futures so that your blended tax rate total is like 22 percent or so. Make 5K or so a day, and on this money you will still only pay the low blended rate... Take reasonable business deductions and be happy. Where else can you make a million bucks a year and only pay 22 percent in tax?? I mean, not some Caribbean shit hole (been there) where your kids aren't safe to exit the home? That's an honest answer to the tax question. Working on getting your income where you need it is easier than cheating the US government was my point. If the point of the thread is to come up with shit that won't work and will subject you to club fed, then fine. I have some really stupid ideas you can implement, just ask!
IB does not report Options - I just did an amended tax filing to add in some gains for my options trades for 2006
The point was to come up with interesting ideas to evade taxes, the whole premise was illegal to begin with, not reduce taxes legally but evade. Here is the opening line from the OP: "This thread is strictly hypothetical. Lets hear some creative ways to avoid paying taxes ." It was a joke which you are taking way too seriously
Most to the USVI and start a fund/business, which legally eliminates US tax requirements. Or move to a tax-free state and only trade futures & FX. 23 percent maximum isn't the end of the world, a lot better than the standard progressive rates & payroll taxes.
Oh, my bad. Well, let's see. 1) Give up citizenship and move to tax haven, Gibraltar, that Greek island starts with M where all the septic tanks spew, uh maybe some others... 2) Use the tax shelter scams, you know the "I own a farm with cows" or some other shit. My uncle is still paying the irs on that one... 3) Since they (the irs) don't get the buy price from the broker, it seems obvious for all you stock traders to simply lie about the buy prices such that you loose huge amounts when you really were net positive. This seems really easy, and KISS principle at work... 4) There are no taxes while in prison as far as I understand... 5) Fly around the world and spend less than 182 days or some shit in the US, blah, blah... 6) Just say Fuck You like Wesley Snipes and don't sweat the small shit.. Plenty more ideas on tap if you need them.
Some countries in Europe. I live in the Netherlands for instance and we don't pay capital gains taxes.
who was your broker? and why did you report a schedule D that didn't match your 1099? that's a major red flag right there. fire your accountant (or, if you did your own taxes, get an accountant)
Enclosed you will find my 2006 tax return showing that I owe $3,407.00 in taxes. Please note the attached article from the USA Today newspaper, dated 12 November, wherein you will see the Pentagon (Department of Defense) is paying $171.50 per hammer and NASA has paid $600.00 per toilet seat. I am enclosing four (4) toilet seats (valued @ $2,400) and six (6) hammers valued @ $1,029), which I secured at Home Depot, bringing my total remittance to $3,429.00. Please apply the overpayment of $22.00 to the Presidential Election Fund, as noted on my return. You can do this inexpensively by sending them one (1) 1.5 Phillips Head screw (see aforementioned article from USA Today newspaper detailing how H.U.D. pays $22.00 each for 1.5 Phillips Head Screws). One screw is enclosed for your convenience.