Roscoboy007 Posted December 4, 2010 Report Share Posted December 4, 2010 DON'T DO IT IF YOU PLAN ON TRYING TO DO SOMETHING WRONG....A very close friend that has lived in in Little Caye for over 10 years was just audited after the government there complied with the US request to report all Americans that have accounts there. It cost him $150,000 in back taxes and penalties. I do believe that if this comes in with a high RV it will be difficult to let that tax check go but just do it. If you have 1M and it comes in at 1 to 1 which would be $1,000,000 and your taxes (federal) would be $350,000 leaving you $650,000. The $350,000 is a lot of money especially knowing it is going into the hands of the government. I will do what I have to so that I do not have the IRS up my A** for the rest of my life. What I did hear, and was confirmed by a CPA, is that there is a law out there that gives the government the right to tax you 15% per year for 5 years as capitol gains on money that is considered "winfall" money - a one time income of large money. So if this get classified as "winfall" then here is the problem - you will pay 35% (maybe 39.5%) the first year this RV's. Then you pay 15% every year after that on the remaining amount. We are looking into this further but that is the latest way that this government will make sure that we are not able to enjoy the fruits of our labor. 3 Link to comment Share on other sites More sharing options...
sidewinder615 Posted December 4, 2010 Report Share Posted December 4, 2010 If that be the case.........well it just sucks!!! But what are you to do besides pay it. Link to comment Share on other sites More sharing options...
pokerplayer Posted December 4, 2010 Report Share Posted December 4, 2010 As I have said numerous times.....pay your taxes and move on. Let the other guy stare over his shoulder. Good post, thxs. pp 2 1 Link to comment Share on other sites More sharing options...
xxxgator Posted December 4, 2010 Report Share Posted December 4, 2010 35% is one thing an additional 15 % oevery year for 5 years is theft an definatly exeedes double taxation. Wheres the free masons now?They succeded in their first coo against england . All hail the new Obama Tyranny 4 Link to comment Share on other sites More sharing options...
Roscoboy007 Posted December 4, 2010 Author Report Share Posted December 4, 2010 If that be the case.........well it just sucks!!! But what are you to do besides pay it. Well I will pay the 1st time and if they come back for more I will have to make that "decission" at that point. They is something to the saying - "The straw that broke the camels back" Link to comment Share on other sites More sharing options...
Adam Montana Posted December 4, 2010 Report Share Posted December 4, 2010 Just an FYI - there are ways that you CAN use corporations to legally lower your tax liability. Simply sticking money in an offshore account and hoping it's never found is foolish. A lot of people say "pay your taxes!" but don't make the distinction of legal deductions vs tax evasion. The highest tax bracket is over 35% for 2010... if you paid less than that, did you 'evade" taxes? Should you go to jail because you paid less taxes than Bill Gates? No. My advice is to prepare the best you can, but when it's time to figure a final amount - don't just pay the top dollar! Take your legal deductions, use legal tax strategies, and pay your advisors for their service. (sorry to hear about your friend being robbed by the government, but your first sentence spelled out the real message pretty clearly: DON'T DO IT IF YOU PLAN ON TRYING TO DO SOMETHING WRONG.) 3 Link to comment Share on other sites More sharing options...
Roscoboy007 Posted December 4, 2010 Author Report Share Posted December 4, 2010 Just an FYI - there are ways that you CAN use corporations to legally lower your tax liability. Simply sticking money in an offshore account and hoping it's never found is foolish. A lot of people say "pay your taxes!" but don't make the distinction of legal deductions vs tax evasion. The highest tax bracket is over 35% for 2010... if you paid less than that, did you 'evade" taxes? Should you go to jail because you paid less taxes than Bill Gates? No. My advice is to prepare the best you can, but when it's time to figure a final amount - don't just pay the top dollar! Take your legal deductions, use legal tax strategies, and pay your advisors for their service. (sorry to hear about your friend being robbed by the government, but your first sentence spelled out the real message pretty clearly: DON'T DO IT IF YOU PLAN ON TRYING TO DO SOMETHING WRONG.) You are right about the legal way to pay taxes and at certain %'s. I have been watching a lot of news about the Bush Tax Cuts and the top 2%. Now I do not feel that anyone should have their taxes raised right now but I have heard that the top 2% pay an average 16-17% after tax "loop holes". How do they do this? I have no idea but I am looking forward to finding out. Above I mentioned "win-fall" and I forgot to add a little info I 'heard" - if someone sent up a TRUST with the willful intend to evade taxes then the penalties can be DRASTIC...(again this is a rumor at this point but I will look into this). A TRUST use to be a way to protect one from certain situations but there is no hiding from the government or their ability to just FREEZE your accounts and then figure it out later. Link to comment Share on other sites More sharing options...
IraqiVet05-07 Posted December 4, 2010 Report Share Posted December 4, 2010 DON'T DO IT IF YOU PLAN ON TRYING TO DO SOMETHING WRONG....A very close friend that has lived in in Little Caye for over 10 years was just audited after the government there complied with the US request to report all Americans that have accounts there. It cost him $150,000 in back taxes and penalties. I do believe that if this comes in with a high RV it will be difficult to let that tax check go but just do it. If you have 1M and it comes in at 1 to 1 which would be $1,000,000 and your taxes (federal) would be $350,000 leaving you $650,000. The $350,000 is a lot of money especially knowing it is going into the hands of the government. I will do what I have to so that I do not have the IRS up my A** for the rest of my life. What I did hear, and was confirmed by a CPA, is that there is a law out there that gives the government the right to tax you 15% per year for 5 years as capitol gains on money that is considered "winfall" money - a one time income of large money. So if this get classified as "winfall" then here is the problem - you will pay 35% (maybe 39.5%) the first year this RV's. Then you pay 15% every year after that on the remaining amount. We are looking into this further but that is the latest way that this government will make sure that we are not able to enjoy the fruits of our labor. This is Bull because you would be taxed in the end 110% of your "windfall" That would be rediculous unless we are living in a Marxist country hmmm with our current president.... Iraqi Vet05-07 1 Link to comment Share on other sites More sharing options...
Adam Montana Posted December 4, 2010 Report Share Posted December 4, 2010 Important part: if someone sent up a TRUST with the willful intend to evade taxes then the penalties can be DRASTIC... Again: There is NOTHING illegal about lowering your tax liability if you do it legally. Cheers 1 Link to comment Share on other sites More sharing options...
sidewinder615 Posted December 4, 2010 Report Share Posted December 4, 2010 (edited) Well I will pay the 1st time and if they come back for more I will have to make that "decission" at that point. They is something to the saying - "The straw that broke the camels back" You are correct on that Roscoboy007!!! That straw will definitely do some back breaking. Edited December 4, 2010 by sidewinder615 2 Link to comment Share on other sites More sharing options...
spainboy Posted December 4, 2010 Report Share Posted December 4, 2010 What’s the danger or tax implication in offshore account? 30% to35% is a huge chunk of change… Link to comment Share on other sites More sharing options...
Hawaii K Posted December 4, 2010 Report Share Posted December 4, 2010 I pay and will be paying my legal share taxes. My money is and will be somewhere outside the United States. What I do with my money is my business. 35 Percent Tax is pure greed, but I guess they need the money to give to the Wall Street Banks don't they. 1 Link to comment Share on other sites More sharing options...
AmyM Posted December 4, 2010 Report Share Posted December 4, 2010 If you do any reading about banking in the Caymans it tells you quite plainly that they comply with IRS regulations! Gotta do your homework people! Do it right the first time, and never worry again! I personally want to "enjoy" this experience - not lie awake nights wondering when it's gonna catch up with me! Link to comment Share on other sites More sharing options...
Hawaii K Posted December 4, 2010 Report Share Posted December 4, 2010 Iraq Vet: That's because our Government believes, that your money belongs to them (It doesn't). They also believe and promote that somehow paying more taxes is of virtue or more patriotic (it's not). Finally, they believe that taxes have the ability to make everyone more equal, instead of of more prosperous (on that they are right). Socialism sucks and has never worked not one time, just ask Europe. This country pretty much started with with a protest against unjust taxation. Washington must listen to its people. 2 Link to comment Share on other sites More sharing options...
Peace Posted December 10, 2010 Report Share Posted December 10, 2010 Check out the "Sovereign Society". Find Robert Baumen, he's the knowledge of offshore accounts. He tells you how legally to do it. Also, some may consider giving up citizenship, that would definitely prevent taxation, but that's rather huge...just a thought!!! Link to comment Share on other sites More sharing options...
LazySusan Posted December 10, 2010 Report Share Posted December 10, 2010 Check out the "Sovereign Society". Find Robert Baumen, he's the knowledge of offshore accounts. He tells you how legally to do it. Also, some may consider giving up citizenship, that would definitely prevent taxation, but that's rather huge...just a thought!!! Brandy, I read the Sovereign Society's stuff - very interesting to say the least. I don't know if anyone will ever convince me that offshore investing is legal and that I won't land in jail, but if anyone can tell you how to do it, they can. Also, the thought of giving up US Citizenship is intriguing to save taxes for sure, but I like being a US Citizen and wish there was another way. Glad to have found another Sovereign Society member Link to comment Share on other sites More sharing options...
larry143 Posted December 10, 2010 Report Share Posted December 10, 2010 I've never known what the winfall tax is but if it IS 15% for 5 years past the original 35% on say $1,000,000 I just figured quickly your cash balances after these taxes.....then by Starting with $1,000,000 of your money: Year 0 $650,000 1 $552,500 2 $469,625 3 $399,182 4 $339,305 5 $289,305 That's taking the income tax out the 1st year and then 15% for 5 years each year after, Is that what you guys are talking about? THAT'S CRAZY And there should be a legal ethical way of getting around that. IMO Link to comment Share on other sites More sharing options...
larry143 Posted December 10, 2010 Report Share Posted December 10, 2010 I've never known what the winfall tax is but if it IS 15% for 5 years past the original 35% on say $1,000,000 I just figured quickly your cash balances after these taxes.....then by Starting with $1,000,000 of your money: Year 0 $650,000 1 $552,500 2 $469,625 3 $399,182 4 $339,305 5 $289,305 That's taking the income tax out the 1st year and then 15% for 5 years each year after, Is that what you guys are talking about? THAT'S CRAZY And there should be a legal ethical way of getting around that. IMO Link to comment Share on other sites More sharing options...
new york kevin Posted January 6, 2011 Report Share Posted January 6, 2011 Hello there dinar family. Looks like not much said in this chat since december. Today 1/6/11, on another well thought of dinar site, don't promote other sites's tidbots, there was a question regarding the rumor that according to the new usa tax laws that any foreign currancy of a non-sovereign nation bought as an investment, that profits here will only be taxed at 7 or 9 percent.. Do any of the dinarvet experts know if this is accurate or not? Link to comment Share on other sites More sharing options...
usndiver Posted January 6, 2011 Report Share Posted January 6, 2011 DON'T DO IT IF YOU PLAN ON TRYING TO DO SOMETHING WRONG....A very close friend that has lived in in Little Caye for over 10 years was just audited after the government there complied with the US request to report all Americans that have accounts there. It cost him $150,000 in back taxes and penalties. I do believe that if this comes in with a high RV it will be difficult to let that tax check go but just do it. If you have 1M and it comes in at 1 to 1 which would be $1,000,000 and your taxes (federal) would be $350,000 leaving you $650,000. The $350,000 is a lot of money especially knowing it is going into the hands of the government. I will do what I have to so that I do not have the IRS up my A** for the rest of my life. What I did hear, and was confirmed by a CPA, is that there is a law out there that gives the government the right to tax you 15% per year for 5 years as capitol gains on money that is considered "winfall" money - a one time income of large money. So if this get classified as "winfall" then here is the problem - you will pay 35% (maybe 39.5%) the first year this RV's. Then you pay 15% every year after that on the remaining amount. We are looking into this further but that is the latest way that this government will make sure that we are not able to enjoy the fruits of our labor. I appreciate your enthusiasm in sharing, however; your CPA is completely wrong. There is an attorney on this forum that goes by the username of ExecConsult he has dug deep into this issue. According to him the gains on this investment will be taxed as ordinary income under Section 988 of the Internal Revenue Code. Here is his post on the matter: http://http://dinarvets.com/forums/index.php?/topic/38152-dinar-taxes-attorney-breaks-it-down/ If you go to the "Tax Discussion" forum you can find several topics written by ExecConsult, all of which are excellent. To conclude, if you are planning on using a CPA in lieu of a tax attorney to handle this for you you might want to think twice. Link to comment Share on other sites More sharing options...
vern Posted January 6, 2011 Report Share Posted January 6, 2011 The one thing about the Caymens is this - when you get there they want you to keep part of your so-called ticket- If you intend to stay for 6 weeks and they check and your at 7 they throw you into jail and then send you home. They then keep everything. What they like is that if you have employees then it works out to about 6 grand a person then you go home to wherever you come from. Tourist trade is what they want. If you do decide to live there watch yourself because they want tax money from everyone, What will happen is that they want to build and do it good . then you have a people who dont want to move and live there .This they cannot get a reveue from so then things will change . Thats when alot of things change and your taxes say are at 18% will go to 30% then on up. The Caymens is not a good place according to my good friend who has property there. He says it is time to dump and look somewhere else. How about LATVIA- Vern Link to comment Share on other sites More sharing options...
Drunken Irish Posted January 6, 2011 Report Share Posted January 6, 2011 DON'T DO IT IF YOU PLAN ON TRYING TO DO SOMETHING WRONG....A very close friend that has lived in in Little Caye for over 10 years was just audited after the government there complied with the US request to report all Americans that have accounts there. It cost him $150,000 in back taxes and penalties. I do believe that if this comes in with a high RV it will be difficult to let that tax check go but just do it. If you have 1M and it comes in at 1 to 1 which would be $1,000,000 and your taxes (federal) would be $350,000 leaving you $650,000. The $350,000 is a lot of money especially knowing it is going into the hands of the government. I will do what I have to so that I do not have the IRS up my A** for the rest of my life. What I did hear, and was confirmed by a CPA, is that there is a law out there that gives the government the right to tax you 15% per year for 5 years as capitol gains on money that is considered "winfall" money - a one time income of large money. So if this get classified as "winfall" then here is the problem - you will pay 35% (maybe 39.5%) the first year this RV's. Then you pay 15% every year after that on the remaining amount. We are looking into this further but that is the latest way that this government will make sure that we are not able to enjoy the fruits of our labor. The Caymans are not a good tax haven. Nevis has the best bank secrecy laws of any country. If you set up a nevis corp managed by a Belize trust your money is secure as it can get Link to comment Share on other sites More sharing options...
Sage449 Posted January 6, 2011 Report Share Posted January 6, 2011 DON'T DO IT IF YOU PLAN ON TRYING TO DO SOMETHING WRONG....A very close friend that has lived in in Little Caye for over 10 years was just audited after the government there complied with the US request to report all Americans that have accounts there. It cost him $150,000 in back taxes and penalties. I do believe that if this comes in with a high RV it will be difficult to let that tax check go but just do it. If you have 1M and it comes in at 1 to 1 which would be $1,000,000 and your taxes (federal) would be $350,000 leaving you $650,000. The $350,000 is a lot of money especially knowing it is going into the hands of the government. I will do what I have to so that I do not have the IRS up my A** for the rest of my life. What I did hear, and was confirmed by a CPA, is that there is a law out there that gives the government the right to tax you 15% per year for 5 years as capitol gains on money that is considered "winfall" money - a one time income of large money. So if this get classified as "winfall" then here is the problem - you will pay 35% (maybe 39.5%) the first year this RV's. Then you pay 15% every year after that on the remaining amount. Read more: AS I UNDERSTAND IT, IF YOU BOUGHT YOUR DINAR PRIOR TO 2010 (NOT SURE ON YEAR) CAN ONLY TAX 15% OFF THE TOP - CANNOT DO THE 5 YEARS - SO IF YOU'VE $1 MILLION IT WILL BE $150,000 ONE TIME ONE SHOT DEAL. ALSO, I WAS WONDERING IF ONE CAN NEGOTIATE WITH THE IRS ON THE 15% OR DO WE HAVE TO TAKE THAT AUTOMATICALLY - I'M ALL FOR PAYING MY TAXES BUT WANT IT TO BE A FAIR SHARE AND NOT GOUGING JUST BECAUSE I TOOK A CHANCE (WILDLY) ON BUYING DINAR - THX FOR LETTING GIVE YOU MY 2 CENTS. Link to comment Share on other sites More sharing options...
Drunken Irish Posted January 6, 2011 Report Share Posted January 6, 2011 DON'T DO IT IF YOU PLAN ON TRYING TO DO SOMETHING WRONG....A very close friend that has lived in in Little Caye for over 10 years was just audited after the government there complied with the US request to report all Americans that have accounts there. It cost him $150,000 in back taxes and penalties. I do believe that if this comes in with a high RV it will be difficult to let that tax check go but just do it. If you have 1M and it comes in at 1 to 1 which would be $1,000,000 and your taxes (federal) would be $350,000 leaving you $650,000. The $350,000 is a lot of money especially knowing it is going into the hands of the government. I will do what I have to so that I do not have the IRS up my A** for the rest of my life. What I did hear, and was confirmed by a CPA, is that there is a law out there that gives the government the right to tax you 15% per year for 5 years as capitol gains on money that is considered "winfall" money - a one time income of large money. So if this get classified as "winfall" then here is the problem - you will pay 35% (maybe 39.5%) the first year this RV's. Then you pay 15% every year after that on the remaining amount. Read more: AS I UNDERSTAND IT, IF YOU BOUGHT YOUR DINAR PRIOR TO 2010 (NOT SURE ON YEAR) CAN ONLY TAX 15% OFF THE TOP - CANNOT DO THE 5 YEARS - SO IF YOU'VE $1 MILLION IT WILL BE $150,000 ONE TIME ONE SHOT DEAL. ALSO, I WAS WONDERING IF ONE CAN NEGOTIATE WITH THE IRS ON THE 15% OR DO WE HAVE TO TAKE THAT AUTOMATICALLY - I'M ALL FOR PAYING MY TAXES BUT WANT IT TO BE A FAIR SHARE AND NOT GOUGING JUST BECAUSE I TOOK A CHANCE (WILDLY) ON BUYING DINAR - THX FOR LETTING GIVE YOU MY 2 CENTS. Negotiate with the IRS? No way unless they determine you have an additional tax liability from a previous year then they may negotiate penalties and interest. But i would reccomend a tax attorney in that case to dispute the total of the liability. Believe me I know. I have been audited 4 times Link to comment Share on other sites More sharing options...
gman51 Posted January 31, 2011 Report Share Posted January 31, 2011 I appreciate your enthusiasm in sharing, however; your CPA is completely wrong. There is an attorney on this forum that goes by the username of ExecConsult he has dug deep into this issue. According to him the gains on this investment will be taxed as ordinary income under Section 988 of the Internal Revenue Code. Here is his post on the matter: http://http://dinarv...breaks-it-down/ If you go to the "Tax Discussion" forum you can find several topics written by ExecConsult, all of which are excellent. To conclude, if you are planning on using a CPA in lieu of a tax attorney to handle this for you you might want to think twice. I agree with this post. I have been a CPA for 11 years and am currently working on my Doctorate in Business Finance and I am going to a Tax Attorney for advice when this RVs. Not saying I will take it, but I will listen to what they have to say. Personally, I still believe this falls under Capitol Gains and I have read ExecConsult's posts. Link to comment Share on other sites More sharing options...
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