This Line????
HJ
I didn't feel offended, so there is no need to apologize. As I said, I like a good argument and I hope I didn't offend anybody either.
Taxes can be avery sensitive issue and most people have strong opinions one way or another. No wonder this thread was getting hot.
I think we are the last 2 people here and the party is over, so probably the best thing to do is just leave... but if you are ever in San Francisco Bay Area let me know and we can talk about all this over a glass of beer!
Peace,
Dane
Yes, I love a good argument every once in a while, too. I take no offense and I too hope I didn't offend anyone. I was just trying to make some fair points hoping to inform. I wish everyone the best no matter where they stand. - #63
- Jun 23, 2006 1:13am Jun 23, 2006 1:13am
- Joined Apr 2006 | Status: Mmmm pips. | 1,418 Posts
No offense meant - it was a direct quote from:
http://www.cia.gov/cia/publications/...k/geos/bx.html
I think the Govt. thinks everyone else but the US is a developing country
"...drug trafficking and illegally importing controlled substances are serious offenses in Brunei and carry a mandatory death penalty."
Mr. Trend
There’s a little known way to game the US tax system, it works extremely well for anyone that can create periods of no or very little monthly income for a couple of months when needed.
<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o
>The end game is to beat the statute of limitations, 7 years, and then you don’t owe anything for that year, taxes or penalties. To do this, you file on time and declare all income but DO NOT PAY anything. The statute of limitations starts to run when they receive a signed return, eventually they will contact you to start their collection process.</o>
<o></o>
<o>What most people don’t know is that there are “Collection Financial Standards” these are allowances for transportation, housing and utilities, food and clothing.<o></o>
http://www.irs.gov/individuals/artic...=96543,00.html
If when they start their collection process, your current gross monthly income is less than the allowances, your delinquent tax liability is classified as uncollectible and they have to stop all collection efforts, this includes removing any liens or wage garnishments. Once they classify you in a uncollectible status its years before they try to establish if you’re still under the allowances, even if you continue to file returns with no payment claiming above average yearly income.<o></o>
</o>
<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o
>The end game is to beat the statute of limitations, 7 years, and then you don’t owe anything for that year, taxes or penalties. To do this, you file on time and declare all income but DO NOT PAY anything. The statute of limitations starts to run when they receive a signed return, eventually they will contact you to start their collection process.</o><o
></o><o
>What most people don’t know is that there are “Collection Financial Standards” these are allowances for transportation, housing and utilities, food and clothing.<o></o>http://www.irs.gov/individuals/artic...=96543,00.html
If when they start their collection process, your current gross monthly income is less than the allowances, your delinquent tax liability is classified as uncollectible and they have to stop all collection efforts, this includes removing any liens or wage garnishments. Once they classify you in a uncollectible status its years before they try to establish if you’re still under the allowances, even if you continue to file returns with no payment claiming above average yearly income.<o
></o></o
> - #65
- Jun 24, 2006 9:01pm Jun 24, 2006 9:01pm
- | Joined May 2006 | Status: Trader | 1,043 Posts
See what happens when traders become tax lawyers??
BTW, Aaron Russo(?) producer of "The Rose" (Bette Midler) and that all time fan favorite "Trading Places", with Dan Akryod and Eddie Murphy, is coming out in theatres nationwide with a new documentary next month in the vein of Fahrenheit 911. The movie won awards in Cannes and is entitled "America: From Freedom to Fascism". That's really the movie's title so hopefully no one is offended.
Aaron addresses this very issue, taxes, citing former IRS agents who were challenged to find the law that says we must pay individual income taxes. Apparently, the agents couldn't locate it and the feds refused to produce the law or cite thereto.
I haven't visited the Fair Tax site referred to herein but I do know that what we currently have is an unapportioned direct tax on individuals which is illegal. The constitution envisioned an apportioned tax, e.g., a flat tax with everyone paying the same rate. Libertarians such as that old slave owner and founding father Thomas Jefferson thought we were the owners of our labor and the government had no rights to the proceeds derived therefrom, except in such manner as described.
The people shouldn't fear the government; the government should fear the people.
It's just they have all the guns (and I'll let you determine who "they" are!!!)
Enuf said. Anyway,
With all the cheddar you guys make, why not contact a CPA familiar with the trading business, legal tax avoidance (not evasion), business structures and offshore activities?
Now can we all just get along???? errr, that is.....back to trading???
Peace. Out.
Money Ma$ter
BTW, Aaron Russo(?) producer of "The Rose" (Bette Midler) and that all time fan favorite "Trading Places", with Dan Akryod and Eddie Murphy, is coming out in theatres nationwide with a new documentary next month in the vein of Fahrenheit 911. The movie won awards in Cannes and is entitled "America: From Freedom to Fascism". That's really the movie's title so hopefully no one is offended.
Aaron addresses this very issue, taxes, citing former IRS agents who were challenged to find the law that says we must pay individual income taxes. Apparently, the agents couldn't locate it and the feds refused to produce the law or cite thereto.
I haven't visited the Fair Tax site referred to herein but I do know that what we currently have is an unapportioned direct tax on individuals which is illegal. The constitution envisioned an apportioned tax, e.g., a flat tax with everyone paying the same rate. Libertarians such as that old slave owner and founding father Thomas Jefferson thought we were the owners of our labor and the government had no rights to the proceeds derived therefrom, except in such manner as described.
The people shouldn't fear the government; the government should fear the people.
It's just they have all the guns (and I'll let you determine who "they" are!!!)Enuf said. Anyway,
With all the cheddar you guys make, why not contact a CPA familiar with the trading business, legal tax avoidance (not evasion), business structures and offshore activities?
Now can we all just get along???? errr, that is.....back to trading???
Peace. Out.
Money Ma$ter
- #67
- Jun 25, 2006 1:23am Jun 25, 2006 1:23am
- | Membership Revoked | Joined Dec 2005 | 2,298 Posts
Same Whore .... Different Dress
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.)
Funny,amazing, brilliant,classic.....
MM
The greatest achievements are those that benefit others....
If you are making decent money it is wise to investigate setting up an offshore company in a tax haven. For example, you could set up a company and then become merely a consultant to this company and draw whatever wage you wish (on which you will pay income tax in your own 'tax slave' country), but the remainder of your capital remains untaxed (or taxed at an extremely low rate ) allowing it to compound freely. This drastically reduces the time needed to reach your finanical goals!!
There are many possibilities and structures available.
If done correctly this is quite legal and it is not necessary expensive. It can also protect assets from death duties, civil suits and divorce courts etc.
There are many possibilities and structures available.
If done correctly this is quite legal and it is not necessary expensive. It can also protect assets from death duties, civil suits and divorce courts etc.
- #72
- Jun 25, 2006 9:48am Jun 25, 2006 9:48am
- Joined Jan 2006 | Status: Monarch o' the Glen | 5,561 Posts
If you are making decent money it is wise to investigate setting up an offshore company in a tax haven. For example, you could set up a company and then become merely a consultant to this company and draw whatever wage you wish (on which you will pay income tax in your own 'tax slave' country), but the remainder of your capital remains untaxed (or taxed at an extremely low rate ) allowing it to compound freely. This drastically reduces the time needed to reach your finanical goals!!
There are many possibilities and structures available.
If done correctly this is quite legal and it is not necessary expensive. It can also protect assets from death duties, civil suits and divorce courts etc.
If this is the route you choose, then choose a country where you want to retire and have access to your assets beacause they will likely be in things like local real estate, small business financing etc.. etc..
Another option is to setup an offshore account in a country that has a Tax Treaty with yours. You will pay taxes but at a far lower rate and you can still retire at home.
- #73
- Jun 25, 2006 12:06pm Jun 25, 2006 12:06pm
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.)
lolol. The truth..... an honest person in forex. My forex "revenue" for 2006 will likely result in a lower tax bill here. I snorted some diet pepsi out of my nose when i read your answer.
Nash,
i've recently had to face the tax issues here in AUS in regard to my forex profits, which is my primary source of income. i did extensive research, asking lots of other people about their setups and talking to accountants. good news is that it's dead easy to get away with not paying the top marginal rate (all 100% legally and to the satisfaction of the ATO), bad news it that depending on how much you make, you'll need to pay up to 30% (the company rate in other words). what you need is a discretionary trust. with that, if you have relatives who aren't earning money (e.g. you have children who are students) you can distribute some of the profits to them and hardly any tax will need to be paid on that money. then you pay yourself so that your personal tax liability is up to (but not exceeding) 30%, then plough the rest into a company. so basically, you do your trading via the trust, then the trustee (which can be you) distributes the money to whoever (children, yourself) or whatever (company) at the end of each financial year. using this setup you avoid the issues which rustyforexman mentioned.
anyway, don't even bother trying to do all of this yourself... it's all so complicated in this country... hire a top accountant who'll take care of everything for you. it all costs a few thousand to setup, but if you're making enough money it's definitely worth it.
also, think of what you can use as expenses (tax deductions). the most wealthy people have some very clever "expenses" indeed, so that on paper they've made no money
there are also some tricks with residency, but you need to live aboard for quite a while and prove that it's not for tax purposes
btw, please don't take what i'm saying here as "professional advice". i just wrote this to give you an idea of what the situation is (because i myself had a nightmare finding out initially).
anyway, good luck.
i've recently had to face the tax issues here in AUS in regard to my forex profits, which is my primary source of income. i did extensive research, asking lots of other people about their setups and talking to accountants. good news is that it's dead easy to get away with not paying the top marginal rate (all 100% legally and to the satisfaction of the ATO), bad news it that depending on how much you make, you'll need to pay up to 30% (the company rate in other words). what you need is a discretionary trust. with that, if you have relatives who aren't earning money (e.g. you have children who are students) you can distribute some of the profits to them and hardly any tax will need to be paid on that money. then you pay yourself so that your personal tax liability is up to (but not exceeding) 30%, then plough the rest into a company. so basically, you do your trading via the trust, then the trustee (which can be you) distributes the money to whoever (children, yourself) or whatever (company) at the end of each financial year. using this setup you avoid the issues which rustyforexman mentioned.
anyway, don't even bother trying to do all of this yourself... it's all so complicated in this country... hire a top accountant who'll take care of everything for you. it all costs a few thousand to setup, but if you're making enough money it's definitely worth it.
also, think of what you can use as expenses (tax deductions). the most wealthy people have some very clever "expenses" indeed, so that on paper they've made no money
there are also some tricks with residency, but you need to live aboard for quite a while and prove that it's not for tax purposes
btw, please don't take what i'm saying here as "professional advice". i just wrote this to give you an idea of what the situation is (because i myself had a nightmare finding out initially).
anyway, good luck.
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!
