Quote:
Originally Posted by avatar33
I think the main problem is your business' bank account location. If you're a PT and you move your biz bank account to a financial haven like Panama or Belize, you should be able to avoid US taxes. Amirite?
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You can avoid them because you are hiding the money. But it is not legal unless you do it correctly.
Panama LLC that the owner of is a local accounting/lawyer firm
you have access to the bank account. the company NETS 300K. you draw out 80 K for personal use. You only have to pay local takes on the first 80K made in a foreign country, not US Tax. YOu draw out 200K you should pay tax US on the 120K.
That is the law (as I recall) but if you decided to pay no US taxes, will they find you if you are living in Panama, probably not, if you are living in San Francisco in a 4000 a month apt and reporting no income, maybe yes.
Here is an issue that you may confront. Lets say you are a US citizen and you really have no plans to take up residency in Thailand/Panama/costa rica etc, and you are banking it with IM. Your panama bank grows and you have a pile of coin. You get married and you want to buy the white picket fenced dream home (it is actually your wife's dream but you go along with it because you like fucking her) You can buy that beauty for CASH, but how do you justify the cash? Where did it come from? International wire for 400K, that will maybe raise a red flag....OK just borrow it, wait you do not qualify because you reported a poverty level income. Get the mortgage in the wife's name and you pay the loan, this may work, and when you get divorced, because you know you will, she is stuck with the loan
But because you loved her you told her about the Panama account and during the divorce she threatens the IRS, and you end up giving her 70% of your panama money so you will not go to jail.