4 replies to this topic

[greenie]

Some questions popped in my mind after reading A-ha's thread. Let me describe few hypothetical situations. I would really appreciate if you help me with the tax consequences for those situations best to your knowledge. I understand that consultation with a tax attorney is the best recourse etc., but anyway.... 1. Let us say John is a US citizen and his wife is neither US citizen nor green card holder. They live in Australia (or Singapore or any other country outside US). How does John pay tax to US on his worldwide income? Does he need to include his wife's income? 2. Let us say John is a trader or investor, and he transfers his family funds to his wife's acccount and trades/invests from there. How does his capital gains get taxed? Technically, nobody can figure out whether it is John or his wife, who is making the trades from their home in Australia. 3. Let us consider another person, Mike, who is single and lives in Singapore. He invests all his money in a singapore-based company called XYZ corporation, and becomes its 100% owner. XYZ corporation executes all trades and pays taxes following all local laws. Does Mike have to pay US taxes as well on the gains of the company, other than the salaries and dividends he takes for himself? 4. Can the same thing be done by someone residing in US ? (like you invest all your money in a corporation, and then do trading on behalf of the corporation for a small salary). 5. Do ex-pats John or Mike need to pay US state tax to any state? 6. What are the best ways you traders minimize tax impacts? Would appreciate any idea. Best, Greenie

[vitaminm]

http://in.rediff.com.../jun/22tax1.htm

[danzman]

what are "you" really trying to do? The IR$ doesn't really have the resources to find jack.

A bunch of C students that are totally surprised when you tell them there is no law
stating that you must file a tax return or pay a Federal tax return (unless you are
trading through a corporation). Look it up on google. P.S. I pay a return because I
don't want to be that guy that has to room with Bubba. Legally, a Federal judge can
keep you in contempt for the rest of your life at this time. The main argument by the gov
is that the lack of law is now "de facto" because NO ONE has challenged the law. The
16th amendment is just fine...you better find another argument.

If you're looking for a quick fix. I noticed that some of the big traders are now based out
of the Caribbean. You have to live there though. Anyone trying to save on state taxes
should talk to a CPA. For example, if I have a Nevada Corp and live in CA, I must
file...AND PAY...CA taxes.

http://www.ftb.ca.go...ms/misc/689.pdf

Good luck! And why is the IR$ based out of Puerto Rico?

http://www.supremela...s/31answers.htm

D

[...]

his wife is neither US citizen nor green card holder

The key to your question is US citizenship or residency. US citizens are taxed on their world-wide income. Foreign residents of the US are (generally speaking) taxed on their US-source income. See 26 USC 861.

A non-citizen/non-resident generally isn't going to have a US tax liability. US state taxation is generally based on residency. The answers to the rest of your questions all follow from the preceeding.

And then we have the subsequent gratuitous tax protestor baloney:

there is no law stating that you must file a tax return or pay a Federal tax return

You sound like Ed Brown and the rest of the TP nut-cakes. The problem with all of their rubbish is the following:

26 USC 1 imposes a federal tax on taxable income.

26 USC 61 defines gross income as all income from whatever source derived.

26 USC 63 defines taxable income as gross income minus allowable deductions.

26 USC 6011 and 6012 require the filing of a return.

26 USC 6151 requires the payment of the tax by the individual required to file the return.

As one can quite easily see, there is plenty of law which requires you to both file and pay.

because NO ONE has challenged the law

There are literally hundreds of idiot tax protestors in federal prison because they have "challenged" the law under any number of ridiculous TP "theories."

Irwin Schiff, the grand-daddy (literally, he's 74) of modern-day TPs will die in federal prison, following his 3rd conviction on felony tax charges.

As will Ed Brown, age 65. And probably his wife, too (age 66,) who also seems to actually believe his TP nonsense and went down with him.

How do these people get to be so old and remain so stupid?

Then there's Simkanin, Meredith, Thompson, Rose and many others yet to come, although the IRS is starting to exhaust their supply of high-profile TP gurus and rube customers for slam-dunk criminal prosecutions.

The US Supreme Court has had numerous opportunities over the last 90+ years to overturn the conviction of a tax prostestor or to validate in even the tiniest way any of their "arguments." They haven't done so.

And why is the IR$ based out of Puerto Rico?

It isn't, it's based in Washington, DC. Don't believe everything you read on the internet. Believe absolutely NOTHING you read on TP sites, ESPECIALLY not at

s.u.p.r.e.m.e.l.a.w dot org

which is a site run by the total and certifiable nut-bag M.i.t.c.h M.o.d.e.l.e.s.k.i a/k/a P.a.u.l A.n.d.r.e.w M.i.t.c.h.e.l.l. (I obscure and obfuscate his names and site because he has a tendency to threaten to sue anyone and anything involved with pointing out facts regarding him and his lunacy.)

While most TP sites are merely looney, he is a non-lawyer who has been permanently barred by a federal court in California from filing anything without prior approval by the court because of his numerous frivolous and outlandish filings (see his dismissed AOL case for umpty-ump billions of dollars, for instance.)

You immediately lose all credibility whatsoever on any topic whatsoever with anyone who has any idea who he is when you quote or rely on a totally delusional psychotic for any reason or purpose.

That notwithstanding, you obviously haven't the first clue when it comes to US tax law and really should refrain from embarrassing yourself further on that topic.

(Note to Mark: Just doing my part to try to tamp down the amount of outrageously ridiculous crap that appears on this site.)

[IndexTrader]

Here's a link to Green and Co. which may give you some information.

http://www.greencompany.com/

IT