Same in MN. Sales tax is charged when you go to get a MN title for the car. It doesn't matter where you originally purchased it.
Fucking Taxes
- Thread starter efeezy
- Start date
Same in MN. Sales tax is charged when you go to get a MN title for the car. It doesn't matter where you originally purchased it.
I am looking at getting a second place to live in a no income tax state for at least half of the year since the new democrat governor in MN has proposed raising the top state income tax rate from 7.85% to 13.95%.
Vehicle registration in MN is also a tax going up to $1,300/year depending on the value of your car rather than a flat yearly fee like Florida/Texas/Washington.
Vehicle registration in MN is also a tax going up to $1,300/year depending on the value of your car rather than a flat yearly fee like Florida/Texas/Washington.
Seriously, wouldn't your time and efforts be better spent building your business and making more money than buying another house and moving back and forth twice a year just to save 6% in taxes??
I would be saving over 13.95% in taxes and I currently make multiple trips to warmer places over the winter anyway.
What about all the holding and/or opportunity costs associated with buying another property, tying up your money and/or getting a loan, paying for property taxes and utilities, etc.? I've considered doing this but just could never get the numbers to work out in a way that makes any sense.
LOL taxes, taxes LOL 
It's all laid out for you right there. A step-by-step guide without the $97 price tag:
Abusive Offshore Tax Avoidance Schemes - Talking Points
It's all laid out for you right there. A step-by-step guide without the $97 price tag:
Abusive Offshore Tax Avoidance Schemes - Talking Points
Keeping an extra $14,000 out of every $100,000 made each year should more than cover all of that in my case. :thumbsup:
Not entirely feasible for everyone, but certainly one potentially plausible approach if taxes within the U.S. are perceived to be too onerous by anyone reading this making "real money" --
More Rich Americans Renounce U.S. Citizenship over Taxes - DailyFinance
From the article:
"In fact, so many people are eager to renounce their U.S. citizenship for tax reasons, that in some U.S. embassies there's a waiting list to escape from the clutches of Uncle Sam."
It's not quite as easy as it might seem, but enough people are successfully doing this to make it a potentially relevant answer to a lot of people on this forum making "real money" who are open to exploring life outside the United States.
I have to argue plus agree on some of your statements.
Im an affiliate marketer and I paid the fed gov. high 6 figures in taxes, so affiliate marketers can benefit from reducing taxes. Even making mid 6 figures ( lets say 500k ) with considerable profit, you can save mid 5 figures a year easily.
Writing off stuff is a legit way of reducing taxes no matter your earning level. Take advantage and upgrade your computers and office furniture every year, take those business trips, etc...
If your doing something shady it doesnt matter anyways, yes you will be caught.
You need to look at the facts and talk to some estate planning attorneys, tax attorneys, etc. Something tells me you got the wrong information or didnt seek it out to begin with.
It is NOT illegal to own offshore bank accounts. It is not illegal to own an offshore business entity.
Any money your offshore business entity makes DOES NOT have to pay taxes on its income. Its only when you funnel that money to yourself as income ( if your american ) are you liable for taxes on that income. Your offshore business that you own partially or in whole does not have a financial obligation to the USA. Its not an American entity. You are however, only you or your American business entity owe taxes to the US.
Example: Panama structure profits 700k in year 1. Your Panama company pays you a salary of 75k. Guess what you owe in taxes.. the 75k you took in as income. You also take dividend payments of 25k from this company as well. Since its dividend payments, you pay less tax then you do on 75k income.
All legal and all legit. Let the company hold what money it wants to hold and you pay taxes on your income from your salary and dividends. When your out of the USA and on your business trips to Panama, you can write off what you want from company funds. Your not required to provide the IRS statements on what your offshore writes off and Panama is not required to submit them either to the US. Matter of fact, lots of countries dont even require your financials anyways to begin with so nothing to report.
The only trial you would have is financials like your bank where you were taking out money while aboard.. do you think its gonna be easy for the US to strong arm Panama or your offshore bank to turn that over? Look how long it took the Swiss banks to finally cave in. They are required to inform the IRS if an American open an account there, however there are ways around that too... dual citizenship or property holdings in other country anyone?
Someone making 500k a year, or even 300k a year AND IS KEEPING all that for themselves in their pocket can live like a king in a few of these countries when they visit them for 7-8 months a year.
NamEno and eliquid,
You guys are right. I should have clarified my "challenge" to include the limitation of not renouncing your citizenship and living the majority of the time in the US (like the overwhelming majority of US citizens do).
eliquid, I know all about what you're talking about and more. But at the end of the day it's not realistic for most people to give up their citizenship or live in other countries for 7 or 8 months out of the year.
For a tiny percentage of people this will fit their lifestyle, but for the majority it does not.
For example, at this stage of my own life and that of my family, you couldn't pay me to live outside the US for 8 months a year. It's mostly the young, single guys who seem attracted to this idea, and honestly of the handful of people I know who've tried this all but 1 has returned to the US.
Unless one has a strong desire to do so for other reasons, having to live outside the country the majority of the time is not a good solution to the challenge of reducing taxes.
You guys are right. I should have clarified my "challenge" to include the limitation of not renouncing your citizenship and living the majority of the time in the US (like the overwhelming majority of US citizens do).
eliquid, I know all about what you're talking about and more. But at the end of the day it's not realistic for most people to give up their citizenship or live in other countries for 7 or 8 months out of the year.
For a tiny percentage of people this will fit their lifestyle, but for the majority it does not.
For example, at this stage of my own life and that of my family, you couldn't pay me to live outside the US for 8 months a year. It's mostly the young, single guys who seem attracted to this idea, and honestly of the handful of people I know who've tried this all but 1 has returned to the US.
Unless one has a strong desire to do so for other reasons, having to live outside the country the majority of the time is not a good solution to the challenge of reducing taxes.
Sounds like a great plan, except from what I'm hearing, lots of states will rape you if they can find out about this - and if they smell suspicion, they'll investigate (every state is strapped for cash). I know CA does this if they can to people living, doing business, shopping, and renting in CA but claiming Nevada and such.
Anyway, see my next post.
NamEno and eliquid,
You guys are right. I should have clarified my "challenge" to include the limitation of not renouncing your citizenship and living the majority of the time in the US (like the overwhelming majority of US citizens do).
eliquid, I know all about what you're talking about and more. But at the end of the day it's not realistic for most people to give up their citizenship or live in other countries for 7 or 8 months out of the year.
For a tiny percentage of people this will fit their lifestyle, but for the majority it does not.
For example, at this stage of my own life and that of my family, you couldn't pay me to live outside the US for 8 months a year. It's mostly the young, single guys who seem attracted to this idea, and honestly of the handful of people I know who've tried this all but 1 has returned to the US.
Unless one has a strong desire to do so for other reasons, having to live outside the country the majority of the time is not a good solution to the challenge of reducing taxes.
You dont have to live outside or renouce at all.. all this is legal as a US citizen. If your not open to living away for 2-3 months at least, you wont be able to take advantage of the money sitting your in biz bank account really, however you could still do this as an American, your money would just sit somewhere else until you could use it, but yeah its not for everyone.
Just moving to a tax free state ( depends on the tax you want to be free from ) can make all the difference in the world. A company making 500k would have saved 30k on state taxes if it was located in Nevada instead of Kentucky. 30k is a big difference.
I mean, as affiliate marketers we try to squeeze 2-7% out of our campaigns all the time, we try to save 2% using an Amex instead of another card with the rewards, we try to save 10% by buying media buys in bulk purchases to get a discount, we try to get payout bumps of 5-20% from the networks.. so why not try to save 4-13% on your taxes.. its just like arbitrage.
Being wealthy is not about what you make, its about what you keep.
Unfortunately, states NOW are trying to go after people as they need cash. However, unless your states has explicit laws ( like Cali ) then your fine to do this for now.
All things change, all loopholes get closed. Taking advantage of the current situation while you can is whats the difference, kinda like when acai first came out and the first movers dominated the market while the late jumpers made no where near what the first movers made.
So today, I had my second meeting with my tax attorney. It was ridiculously interesting. His opinion is basically, if you're running a business and you're paying taxes, you're doing something wrong.
This guy will use EVERY legal tool in the arsenal to get it done. Real Estate, multiple companies leasing to themselves, pension plans, 50/50 insurance splits, retirement funds, it goes on. I was blown away. But he doesn't need to use anything close to his entire arsenal to get my taxes down, although having that as a backup sounds awesome.
He said not to spend money for the sake of spending. Don't do his job for him. Do what's right for the business. He's the gun, but I can point it wherever I want.
Anyway, this guy is nuts and I love him. Larger than life, very fiscally conservative, hates the IRS but avoids audits like a pro, and has some crazy Libertarian-esque rants and opinions, which I'm sure I paid out the ass for listening to.
He charges $500/hr. Yes, 500. But his clerical employees are far less. The whole shebang is gonna cost me about $2000 to get changed to an S-Corp, 2010 filed, and 2011 plan setup and all... This is not worth it for my 2010 return, but will have ROI come 2011 now that things are hoppin.
Sure I can convert to S-Corp myself but I'm sick of my amateur hour shit, and don't want to be in eFeezy's boat in the future.
So all I have to say is... efeezy, you need to find someone. PM me if you want a referral, although it's a far commute, but I'm sure he has some crazy guys down in SD too.
And as an addendum, he now wants to go into business with me on something. When people with money and brains realize how well you can do with this Make Monies Online thing, they find ways to take it to the next level in ways we don't think of. We'll see how my research works out.
This guy will use EVERY legal tool in the arsenal to get it done. Real Estate, multiple companies leasing to themselves, pension plans, 50/50 insurance splits, retirement funds, it goes on. I was blown away. But he doesn't need to use anything close to his entire arsenal to get my taxes down, although having that as a backup sounds awesome.
He said not to spend money for the sake of spending. Don't do his job for him. Do what's right for the business. He's the gun, but I can point it wherever I want.
Anyway, this guy is nuts and I love him. Larger than life, very fiscally conservative, hates the IRS but avoids audits like a pro, and has some crazy Libertarian-esque rants and opinions, which I'm sure I paid out the ass for listening to.
He charges $500/hr. Yes, 500. But his clerical employees are far less. The whole shebang is gonna cost me about $2000 to get changed to an S-Corp, 2010 filed, and 2011 plan setup and all... This is not worth it for my 2010 return, but will have ROI come 2011 now that things are hoppin.
Sure I can convert to S-Corp myself but I'm sick of my amateur hour shit, and don't want to be in eFeezy's boat in the future.
So all I have to say is... efeezy, you need to find someone. PM me if you want a referral, although it's a far commute, but I'm sure he has some crazy guys down in SD too.
And as an addendum, he now wants to go into business with me on something. When people with money and brains realize how well you can do with this Make Monies Online thing, they find ways to take it to the next level in ways we don't think of. We'll see how my research works out.
I have several attorneys and I love all of mine.
There ARE lots of ways to reduce your tax while not going offshore for sure, tons of ways. However, some of the setups are pure headaches, even when having someone else handle it.
Be careful on the insurance splits and other things he mentioned. I brought up the same things to all of mine and there are gotcha's at every level.
For example, want your company to pay for your life insurance and write that shit off while getting a great benefit? Ask what happens when your company bought life insurance finally pays out when you die, the entire proceeds will be taxable income, whereas if bought normally it is not.
Just make sure your asking more questions is all I am saying. I wasnt comfortable with a lot of the setups because all my what-if I had about them ended up being not as flexible as I liked, even though I was saving money "upfront". Upfront being KEYWORD.
There ARE lots of ways to reduce your tax while not going offshore for sure, tons of ways. However, some of the setups are pure headaches, even when having someone else handle it.
Be careful on the insurance splits and other things he mentioned. I brought up the same things to all of mine and there are gotcha's at every level.
For example, want your company to pay for your life insurance and write that shit off while getting a great benefit? Ask what happens when your company bought life insurance finally pays out when you die, the entire proceeds will be taxable income, whereas if bought normally it is not.
Just make sure your asking more questions is all I am saying. I wasnt comfortable with a lot of the setups because all my what-if I had about them ended up being not as flexible as I liked, even though I was saving money "upfront". Upfront being KEYWORD.
Oh, I hear you, and I'll cross that bridge when I get to it. I'm nowhere near needing to worry about pensions and insurance.
I just love the style. If I can hide money away from the government now and have my children deal with some bullshit later, that's fine by me.
Anyway, I don't foresee myself payin no $27k tax with this guy.