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I don't want to pay tax

  • #101
  • Jan 13, 2007 3:40am Jan 13, 2007 3:40am
Here in the USA the way to do it, really, is to use an LLC and have your trading accounts under that company. Trade your ass off then use the tax benefits of an LLC, like office expenses, etc., as write-offs. I'm no accountant, but I've been schooled by a few, and you can even write off trading losses when it's done properly. I would never renounce my US citizenship just to avoid taxes, however. That's just plain silly...
"The time to act is when others show signs of tire." --W.D. Gann
  • #102
  • Jan 27, 2007 9:12pm Jan 27, 2007 9:12pm
Quoting dukeofdents
Here in the USA the way to do it, really, is to use an LLC and have your trading accounts under that company. Trade your ass off then use the tax benefits of an LLC, like office expenses, etc., as write-offs. I'm no accountant, but I've been schooled by a few, and you can even write off trading losses when it's done properly. I would never renounce my US citizenship just to avoid taxes, however. That's just plain silly...
It is indeed silly if you are making 100k or so trading. However, it is not silly if you are making big time profits trading or anything else.
Many very wealthy people have and are doing it because it is really only legal way to eliminate taxes.
By the way, I do believe in paying taxes. However, federal income tax goes 100% into paying off interest on national debt that our government has so irresponsibly piled on us with the Federal Reserve (a private corporation which is as Federal as John Gotti) making a killing on. The bulk of federal income tax does not go into ANY social programs or infrastructure improvements really.
  • #103
  • Jan 27, 2007 9:49pm Jan 27, 2007 9:49pm
Quoting MrWhipple
In the US the way to avoid income tax is to avoid income. It is really quite simple. Just don't make any money. I have been doing this verry successfully for years and years. There is no trick to it at all.

If you are into Forex it is even easier. Just trade like there is no tomorow. Trade trade, trade, day and nite, just trade. Take the good trades with the bad ones and soon, even if you had a bit of money to start with, now you will have none and you can mabie even take the loss forward to the next year. (see a tax professional for any and all tax advice.)
Ya, it gets even better, the less money I make the bigger tax refunds I get at the end of the year.
  • #104
  • Jan 27, 2007 9:50pm Jan 27, 2007 9:50pm
Quoting zarni
However, federal income tax goes 100% into paying off interest on national debt that our government has so irresponsibly piled on us with the Federal Reserve (a private corporation which is as Federal as John Gotti) making a killing on. The bulk of federal income tax does not go into ANY social programs or infrastructure improvements really.
This is the TRUTH. Every dime paid by Americans in federal income tax goes to international bankers. NOTHING is paid toward "government services". Those "services" are amassing a debt that will be paid by our children and our children's children. In fact, if you're an American paying federal income taxes, it doesn't make you a "good American" you are merely already a wage slave to the international bank and are active in selling your children into slavery too.

The federal reserve (a private banking corp.) has robbed our country of its true prosperity.

There is no law requiring the average American to pay an "income tax".

IRS Commissioner Mark Evereson was confronted as to the existence of any law requiring Americans to pay federal taxes. Watch the video below to see his interesting "answer". It's an eye-opener for sure.

Inserted Video
Is your SL my TP?
  • #105
  • Jan 27, 2007 10:06pm Jan 27, 2007 10:06pm
Quoting Vlad
Actually its only US who charges taxes on its citizens residing and working abroad. Well, may be a few other countries too, i don't know. What I do know is that there are $50 000 award for anyone who can find a Law which make Americans pay income tax. The donor should really offer a billion-- noone will claim it anyway.

That is true. However, it doesn't really matter because as our wonder of a president said "the constitution is just a goddamn piece of paper".
The courts always rule in favor of the goons called the IRS. So you may as well give up on the law protecting ya because it ain't gonna happen.
  • #106
  • Jan 27, 2007 10:26pm Jan 27, 2007 10:26pm
Well said Duke.
Quoting dukeofdents
Here in the USA the way to do it, really, is to use an LLC and have your trading accounts under that company. Trade your ass off then use the tax benefits of an LLC, like office expenses, etc., as write-offs. I'm no accountant, but I've been schooled by a few, and you can even write off trading losses when it's done properly. I would never renounce my US citizenship just to avoid taxes, however. That's just plain silly...
  • #107
  • Jan 28, 2007 2:11pm Jan 28, 2007 2:11pm
what doest this mean?

No capital gain tax on foreign exchange profit in Switzerland.

If I will trade in Swiss Forex company and have a swiss bank account, I don`t have to pay taxes???

Thanx
  • #108
  • Jan 28, 2007 4:33pm Jan 28, 2007 4:33pm
Australia like most countries ( with the exception being the U.S.) taxes based on residence, so a nice easy way to avoid not paying the taxes legally is to move to a place where there is not capital gains taxes. In your area of the world ( I live in Europe so my options are different), I think you should check out such places as Hong Kong, Macau, Singapore, Brunei and Vanuatu. You can still go back to Australia just donīt stay there more than the 186 days that makes you qualify as a resident.
Your second option would be to register a company in a tax haven and there plenty of places in the world where you could do that ( even in the States ! the state of Delaware ). Australia likes most countries likes to tax its residents on their worldwide income. However, a company is a separate entity from its owner(s) and Australia has no power and/or any legal right asking for taxes from companies outside its borders. The only thing Australia can do is to tax a dividend ( if there is one) or if the company is sold and capital gain is made that can also be taxed, otherwise if you do your trading through the registered offshore company it is none of their business.
These are just general guidelines, always check with a tax professional in your country and set things up in a clear legal way. Best of luck in making the money !

Quoting nashanaas
Is there a simple 1,2,3 way of avoiding tax legally?

I have gone through the posts and there is so much useful information e.g. Green Company articles and other items alike (mainly US tax related). I am waiting on VWB-III as well. But if there is a simpler way, please share.

Nash

PS. Information with respect to Australian tax system will be highly welcomed!

  • #109
  • Jan 28, 2007 5:51pm Jan 28, 2007 5:51pm
[quote=Soros II;200514]
Your second option would be to register a company in a tax haven and there plenty of places in the world where you could do that ( even in the States ! the state of Delaware ).

This won't work in the U.S. Even if you open an off shore corporation, your still legally bound to paying U.S. Taxes. Delaware has absolutely nothing to do with tax havens.

The bottom line is that your stuck paying taxes in the U.S. until you become a citizen of another country. Most talk about it and very few actually do it just to avoid taxes. You can't avoid paying taxes but you can use business deducations that are to your advantage if you start an LLC. I still think that 23% capital gains tax is not bad if you elect the I.R.S. Status 1256.

Let's be realistic.....Uncle Sam is getting smarter. If you decide to not pay your taxes, they may freeze your assets, your bank accounts, lose your job, your house, your boat, your cars, have a felony criminal record and do time in jail, courts can order you not to trade any security markets and stock markets and may lose your family. NOT WORTH THE TROUBLE. Pay the 23% and you won't have to look over your shoulder because you will get caught. The banks are cooperating with the I.R.S. more than you realize.

Yes, paying taxes on forex gains does suck, but we have no other choice.
  • #110
  • Jan 28, 2007 7:06pm Jan 28, 2007 7:06pm
This is why I love my 3rd world country!

move to the Philippines there are still currently no set laws regarding forex trading, so right now forex trading in the Philippines is non taxable.


Regards,
Mikhail
  • #111
  • Jan 28, 2007 7:11pm Jan 28, 2007 7:11pm
From what I've been told, forex brokers don't send anything to the IRS. Forex gains are based on an honor system...

So I guess it depends on whether or not your honorable.
Mr. Trend
  • #112
  • Jan 28, 2007 7:20pm Jan 28, 2007 7:20pm
[quote=WHTenn;200534]
Quoting Soros II
Pay the 23% and you won't have to look over your shoulder because you will get caught. The banks are cooperating with the I.R.S. more than you realize.

Yes, paying taxes on forex gains does suck, but we have no other choice.
this is crazy... 23% tax is amazing... many people dream they can pay so little. It would almost make somebody want to move to the US.
  • #113
  • Jan 28, 2007 7:23pm Jan 28, 2007 7:23pm
[quote=WHTenn;200534]
Quoting Soros II
The bottom line is that your stuck paying taxes in the U.S. until you become a citizen of another country.
not as easy as it sounds... (I'm sure WHTenn knows this, I'm just writing for benefit of others)... apparently you can't be giving up your citizenship for tax reasons either... at least from what I've heard.
  • #114
  • Jan 28, 2007 7:38pm Jan 28, 2007 7:38pm
Personally, I resent those who try to get away without paying taxes. I do agree with an earlier post that it is fine to find whatever allowances there are within the law to reduce your tax.

But if you live in the US and are not poor,then you SHOULD pay taxes or:

Get off and stay off the roads and sidewalks

Dont go to parks and playgrounds

Tell the police you do not ever want them to help you

Let the fire department know that they dont need to bother coming to your house for any emergency

Dont use the public library

Dont go to any sports arena or stadium (except maybe Green Bay)

Oops, you cant use the phone... taxes pay for some of that. Oh, and dont even think about using the post office.

Unless you own your own system, You had also better stop using city water and sewer, monthly charges dont pay for all of that.

So where does that leave you?

Lou
  • #115
  • Jan 28, 2007 8:27pm Jan 28, 2007 8:27pm
Quoting Lou
Personally, I resent those who try to get away without paying taxes. I do agree with an earlier post that it is fine to find whatever allowances there are within the law to reduce your tax.

But if you live in the US and are not poor,then you SHOULD pay taxes or:

Get off and stay off the roads and sidewalks

Dont go to parks and playgrounds

Tell the police you do not ever want them to help you

Let the fire department know that they dont need to bother coming to your house for any emergency

Dont use the public library

Dont go to any sports arena or stadium (except maybe Green Bay)

Oops, you cant use the phone... taxes pay for some of that. Oh, and dont even think about using the post office.

Unless you own your own system, You had also better stop using city water and sewer, monthly charges dont pay for all of that.

So where does that leave you?

Lou
From what I understand, in the US state and local taxes pay for all of that. Federal does not.
  • #116
  • Jan 28, 2007 8:36pm Jan 28, 2007 8:36pm
I wonīt get into details of what happens in the U.S. in terms of taxes because I donīt live in the U.S. ( eventhough I have been there many times and have good friends and family ) and I am not an American citizen, so I am not taxed by the IRS.
What I posted is what has actually happened in legal way to minimize taxes around the world. With regards to Delaware, what I meant is if you have a registered international company in that state and all income earned from outside the U.S. is not subject to American taxes. So if you are using, letīs say a Swiss or an English forex broker you wonīt have to pay a dime.
As to being an American citizen your options are curtailed to certain extend but not totally closed. If you donīt mind living abroad, you are entitled to (if I am not mistaken ) earn $ 80,000 without having to pay U.S. taxes. So if you earn $80,000, your wife earns $ 80,000 and letīs say each of the kids (2 children ) earns $30,000, well thatīs $240,000 tax free ! There are many places in the world were you pay ZERO capital gains on forex some of them are not even tax havens. Over here in Europe we almost a dozen countries to choose from in this regard. There are many other legal ways that you can as an American minimize your taxes, this was just an example and trust me there are many Americans paying almost nil on their trading and doing it legally.

P.S. Do you want to know where the worldīs largest tax haven is ? Iīll give a clue. Itīs an island, it doesnīt tax interest on bank accounts, capital gains on stocks, derivatives and forex and doesnīt have an information exchange with most countries in the world.(Wow, even better than the Cayman Island) Well itīs Manhattan. NY is home to the largest pool of internatinal capital that is not taxed, that is, if you are a foreigner. It seems that Uncle Sam treats foreigners a lot better than its own citizens.

[quote=WHTenn;200534]

Quoting Soros II
Your second option would be to register a company in a tax haven and there plenty of places in the world where you could do that ( even in the States ! the state of Delaware ).

This won't work in the U.S. Even if you open an off shore corporation, your still legally bound to paying U.S. Taxes. Delaware has absolutely nothing to do with tax havens.

The bottom line is that your stuck paying taxes in the U.S. until you become a citizen of another country. Most talk about it and very few actually do it just to avoid taxes. You can't avoid paying taxes but you can use business deducations that are to your advantage if you start an LLC. I still think that 23% capital gains tax is not bad if you elect the I.R.S. Status 1256.

Let's be realistic.....Uncle Sam is getting smarter. If you decide to not pay your taxes, they may freeze your assets, your bank accounts, lose your job, your house, your boat, your cars, have a felony criminal record and do time in jail, courts can order you not to trade any security markets and stock markets and may lose your family. NOT WORTH THE TROUBLE. Pay the 23% and you won't have to look over your shoulder because you will get caught. The banks are cooperating with the I.R.S. more than you realize.

Yes, paying taxes on forex gains does suck, but we have no other choice.

  • #117
  • Jan 28, 2007 9:21pm Jan 28, 2007 9:21pm
Quoting Mr Trend
From what I've been told, forex brokers don't send anything to the IRS. Forex gains are based on an honor system...

So I guess it depends on whether or not your honorable.
Your correct, brokerage firms do not (at this point I may add), send your account information to the I.R.S. Let's say that the I.R.S. does one day... have access to your brokerage firm. You will be held accountable for your past and present trading records.

On the other foot, let's say that you don't pay taxes. Your forex trading becomes profitible and your brokerage firm sends you a withdrawal check. If you put it in your bank account, you now have a trail for the I.R.S. If Uncle Sam audits you for one reason or another, how are you going to explain income coming from your brokerage account?

Incorporate your LLC in Nevada, pay your taxes and you will not be looking over your shoulder.
  • #118
  • Jan 28, 2007 9:45pm Jan 28, 2007 9:45pm
Quoting WHTenn
Your correct, brokerage firms do not (at this point I may add), send your account information to the I.R.S. Let's say that the I.R.S. does one day... have access to your brokerage firm. You will be held accountable for your past and present trading records.

On the other foot, let's say that you don't pay taxes. Your forex trading becomes profitible and your brokerage firm sends you a withdrawal check. If you put it in your bank account, you now have a trail for the I.R.S. If Uncle Sam audits you for one reason or another, how are you going to explain income coming from your brokerage account?

Incorporate your LLC in Nevada, pay your taxes and you will not be looking over your shoulder.
Hey, I'm not condoning it. But I am exposing something that we all know is the "dirty little secret" amongst forex traders. I'm just surprised no one has called it out.

Trust me, I am all for being honest with Uncle Sam. I couldn't agree more.
Mr. Trend
  • #119
  • Jan 28, 2007 9:57pm Jan 28, 2007 9:57pm
Quoting Lou
Personally, I resent those who try to get away without paying taxes. I do agree with an earlier post that it is fine to find whatever allowances there are within the law to reduce your tax.

But if you live in the US and are not poor,then you SHOULD pay taxes or:

Get off and stay off the roads and sidewalks

Dont go to parks and playgrounds

Tell the police you do not ever want them to help you

Let the fire department know that they dont need to bother coming to your house for any emergency

Dont use the public library

Dont go to any sports arena or stadium (except maybe Green Bay)

Oops, you cant use the phone... taxes pay for some of that. Oh, and dont even think about using the post office.

Unless you own your own system, You had also better stop using city water and sewer, monthly charges dont pay for all of that.

So where does that leave you?

Lou
You must have missed my earlier post here.

The Grace Commission under Ronald Reagan performed a study and it's official; the majority of taxes paid to the federal government are lost in bureaucracy, the remaining portion goes straight to the World Bank.

And Snuffleupagus is correct- none of the "services" you mention would be paid by federal tax money anyway- so it's a moot point.
Is your SL my TP?
  • #120
  • Jan 28, 2007 10:34pm Jan 28, 2007 10:34pm
I was playing with my turbotax. (That's a program that will calculate us tax)
and here is what I got.

If a married man with a child and a mortgage would make money only in forex
with no expenses to speak of, his Federal tax would be:
(this man lives in Florida, so he pays no State taxes, I mean its' still legal for a US citizen to emigrate to Floirda. He-he-he, tax haven on american soil.)

Income/ Taxes/ %
25,000 2482 9.9
30,000 3262 10.9
35,000 4194 12.0
40,000 5133 12.8
50,000 7006 14.0
60,000 8879 14.8
70,000 10572 15.1
80,000 12625 15.8
100,000 17118 17.1
150,000 28432 19.0
200,000 39236 19.6
500,000 118580 23.7
God forbid you make a half-million dollars in forex in a year, you are still under 25%.

Cheers.
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