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How to legally pay no taxes... possible?

Discussion in 'Asset Protection/Taxes/Legal' started by André Casal, Dec 31, 2018.

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  1. GlobalWealth
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    GlobalWealth Platinum Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    Why are legal strategies for minimizing or eliminating your tax burden a crime?
     
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  2. GlobalWealth
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    GlobalWealth Platinum Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    He is Portuguese, but specifically asked about US tax questions and the IRS.
     
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  3. GlobalWealth
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    GlobalWealth Platinum Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    I'll try to get a bit more practical here now.

    First of all, you need to consider YOUR business and YOUR opportunity.

    If your business has nexus (physical connection) to a certain jurisdiction, then you are obligated to pay tax in that jurisdiction, if any.

    For example, if you own a chain of pizza restaurants in Iowa, you would have clear nexus. You would need to pay payroll tax for your employees plus income tax on your business and your personal tax.

    If your business is more location independent, then you have more options.

    Maybe you can "move" your business to a more tax friendly jurisdiction.

    However, you would then need to consider the other factors like your citizenship, your legal residency, your tax residency (not always the same), etc.

    If you have a location independent business but live in New York city, you will have a federal, state and city income tax obligation regardless of whether your business is registered in Nevada, Delaware or Seychelles.

    If you are willing to give up your residency status in your home, presumably high tax country, and live in a tier 1 or 2 country, then it is easily structured for a zero tax lifestyle.

    There are also some more complicated strategies available to "strip" out profit from your business for tax deferral, but typically the more complex strategies are for higher incomes (I'm not assuming your income.....or @Vigilante's gender for that matter).
     
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  4. rogue synthetic
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    rogue synthetic * Not actually Rutger Hauer Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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  5. OlivierMo
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    OlivierMo Bronze Contributor

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    Amen brothers. Nobody thinks in terms of efficiency and productivity of government, waste, etc... They've been zombified by politicians, the bureaucratic class and the technocrats. It's fairly pathetic.
     
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  6. OlivierMo
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    OlivierMo Bronze Contributor

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    @AgainstAllOdds @CareCPA @Kak - I lost track of the thread when it went full Lord of the Flies, but RE: using cash basis accounting and putting your money in inventory to reduce income tax:

    Here's what I don't understand, and I'm guessing it's because I'm missing something fundamental. If you buy all that inventory before year end, you increase your property tax when you have to report your 12/31 inventory right? Are you really coming out ahead, or are you just decreasing income tax but getting hit with property tax?
     
  8. CareCPA
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    Property tax does not exist on a federal level. Do you have a state-specific property tax that you're concerned about?

    My general experience is that the threshold is high (or the exemption is high, depending on wording), and that tax is generally low. Usually property taxes target mainly real property (real estate) and higher-value tangible property (i.e. vehicles, heavy machinery, etc). This varies heavily by state. Example: PA does not have a tax on assets, only an income tax.

    If you can provide more context, I may be able to help out more.
     
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  9. G-Man
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    G-Man Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    So I’m in TX which is no state income tax but high property tax - I’m so used to working in big companies that I was assuming - but now that you mention threshold, I think inventory value has to be north of a certain relatively high amount before it kicks in
     
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  10. rogue synthetic
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    rogue synthetic * Not actually Rutger Hauer Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Imagine if all the people who agree with this bill but believe it is impossible suddenly said, "you know what, I'm going to call my Congressman about this!"

    Would the scripted Eeyore line "this could never happen" still be impossible?
     
  11. Guest6xt1
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    Apologies to all, someone accessed my account without my permission (let it be known it's not my comment). Though it's a lesson for me to be more careful with my account.
     
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  12. OlivierMo
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    OlivierMo Bronze Contributor

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    I don't think it'd make any difference. Politicians are buddy buddy despite the show they're putting on. It's like 2 businesses that are supposed to compete but have some kind of common interests (e.g prices can't get too low). Their bread and butter is donations from big donors who expect tax breaks, subsidies and other advantages in return. Remove all of that and politicians stop having leverage. Power isn't usually ethical.
    Sorry for being a party pooper but looking how Western democracies are evolving, I can't be that optimistic. I think most of our elites have contempt for citizens now (Macron in France.)
     

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