Taxes: Can a Trader Relocate to tax-free locale?

Discussion in 'Taxes and Accounting' started by Sean McLaughlin, Dec 14, 2009.

  1. Bob111

    Bob111

    imo-impossible for US citizen. there is so many rules and regulatios outhere, that you may violate one without even knowing about it. and when it's comes to IRS -the penalties are pretty stiff and arm of the US law is pretty f* long..

    here is an examples-

    http://www.irs.gov/businesses/small/article/0,,id=154555,00.html

    http://taxes.about.com/od/preparingyourtaxes/a/TDF90221.htm

    http://taxes.about.com/od/preparingyourtaxes/a/TDF90221_2.htm

    back to original question-you can relocate to tax free place\country but if you are US citizen- you must file and pay your taxes
     
    #31     Dec 15, 2009
  2. joe4422

    joe4422

    Even non US citizens have to pay tax if they trade the US markets, I believe. There are some countries that have no capital gains tax, but again, that's if you trade their markets, which normally are pretty useless.
     
    #32     Dec 15, 2009
  3. you will have to pay taxes to us if you make money outside of the country. The us is one of the few countries inthe wrold who have this law... it's like hotel california once you check in you can never leave.....if you turn in your passport then you can move to one of those countries and not pay any taxes the us , but you will no longer be a citizen of the usa.
     
    #33     Dec 15, 2009
  4. are you smarter than a fifth grader? answer. no.
     
    #34     Dec 15, 2009
  5. Whats the hassle?

    Lots of companies providing all-inclusive offshore incorporation services.
    Establish an offshore trading company and keep most of the profits there until much later..
     
    #35     Dec 15, 2009
  6. With the right lawyer & CPA team, anything is possible, if only for a short time. However, given the resources of the IRS and the fear they instill into every other govt agency including the FBI, I would not gamble that simply moving my life from the US with no plans to ever return, would be sufficient protection from the long arm of the IRS. Plenty of people have done the Bahamas, Switzerland and Vanuatu thing, and wound up surprised when their bank sent them a memo regarding an unscheduled debit.
     
    #36     Dec 15, 2009
  7. Income Tax Return Reporting of Foreign Accounts. In addition to the FBAR reporting rules, U.S. Federal tax law requires U.S. taxpayers to properly report on their U.S. Federal income tax returns, and timely pay applicable income taxes on, any interest, dividends, gains or other income earned on their offshore bank and financial accounts, whether or not such foreign accounts are subject to FBAR reporting. In connection with that requirement, and as an adjunct to FBAR reporting, U.S. persons must specifically disclose annually on their U.S. Federal income tax returns, under penalty of perjury, whether they own or have other financial interests in, or have signature or other authority over, any foreign bank and other foreign financial accounts during the tax year in question. The requirement to disclose ownership of foreign financial accounts aggregating over $10,000 on income tax returns applies to individuals (Form 1040, Schedule B), corporations (Form 1120, Schedule N), partnerships (Form 1065, Schedule B) and trusts and estates (Form 1041, Schedule G).

    Treasury Regulations under the Federal Bank Secrecy Act require any “U.S. person” who has a “financial interest” in, or signature or other comparable authority over, one or more “financial accounts” maintained in a foreign country to file an annual report identifying their foreign accounts if the aggregate account value exceeds $10,000 during the calendar year. Those annual reports, commonly referred to as “FBAR Reports,” must be filed with the Department of Treasury on Form TD F 90-22.1 separate and apart from income tax returns. FBAR Reports for a particular calendar year normally are due on June 30th of the succeeding year.

    For purposes of the FBAR reporting rules:

    •A “U.S. person” is a citizen or resident of the U.S. or a domestic partnership, corporation, LLC, estate or trust.

    •The term “financial account” is defined broadly and includes any bank, securities, securities derivatives, or other financial instrument account. Typically, this would include, but is not confined to, offshore savings, deposit or checking accounts at a bank or offshore brokerage accounts.
    •A U.S. person has a “financial interest” in a foreign “financial account” if the account is owned by the U.S. person. A U.S. person also has a “financial interest” in any foreign “financial account” that is owned by: (i) a corporation, partnership, trust or other entity in which the U.S. person has a greater than 50% ownership or beneficial interest; or (ii) a trust established or otherwise controlled by the U.S. person.

    •Even if a U.S. person does not have a “financial interest” in a foreign “financial account,” FBAR reporting is required if the U.S. person has signature or comparable authority over the account and the $10,000 threshold is exceeded.

    •Foreign financial accounts aggregating over $10,000 at any time during a year are subject to the FBAR annual reporting requirement even if the accounts are owned by tax-exempt U.S. persons or are non-income-producing.

    •Foreign financial accounts do not include, however, accounts maintained at a U.S. branch or other U.S. office of a foreign financial institution.
     
    #37     Dec 15, 2009
  8. In other words, FuBAR. The code word for the US Department of Treasury, better known as the IRS.
     
    #38     Dec 15, 2009
  9. VERY INTERESTING THREAD
     
    #39     Dec 15, 2009
  10. NO.

    Since the patriot act your fucked if you want to stay legal.

    DO NOT listen to these no nothing jokeheads.
     
    #40     Dec 15, 2009