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Subject:
How do I pay less taxes?
Category: Business and Money > Accounting Asked by: anotherway-ga List Price: $10.00 |
Posted:
13 Nov 2006 00:20 PST
Expires: 19 Nov 2006 07:07 PST Question ID: 782282 |
Here is my situation: I'm 23 and single now, I'm planning to immigrate to the U.S. (EB-5) and my parent will stay on my current country. I'm working at home and don't have a company. I'm earning more than 40k USD/Month from the internet (from Google AdSense and other programs). I know if I immigrated to the US, I will have to pay a very high tax for my income. So my question is: Per my situation, is there any way to pay less taxes? |
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There is no answer at this time. |
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Subject:
Re: How do I pay less taxes?
From: myoarin-ga on 13 Nov 2006 14:09 PST |
Hi, Does your Adsense income have to be in your name? Is it possible to transfer your account to your parent or to a company that you establish? According to the Terms of Service, which you can click on below, information about illegal activities may not be posted here. |
Subject:
Re: How do I pay less taxes?
From: anotherway-ga on 14 Nov 2006 02:59 PST |
Hi myoarin, Thank you so much for your reply! Yes, I can transfer to my parent, but if so, when my parent sends me money, do I still pay tax? (I remember the max allowed tax-free 'gift' is 10k/year) About company tax: If I form a company and transfer the income to my company account, will I pay less tax? I don't know much about the US company tax regulation. |
Subject:
Re: How do I pay less taxes?
From: myoarin-ga on 14 Nov 2006 04:20 PST |
Hi Anotherway, I was supposing that you would establish a company in your own country, which would pay taxes there. Of course, dividends or distributions to you would/should be taxed in the States, but presumably you wouldn't need to have all the income distributed. This could affected by a treaty between the two countries to avoid double taxation, if one exists between your home country and the USA. I believe - but I am no expert - that gifts received from abroad are not subject to US tax, though one does have to report the receipt of funds in excess of a certain amount. The subject is more complicated than I originally thought. I should have checked before on what and EB-5 visa is: http://www.rapidimmigration.com/usa/1_eng_info_investor.html If your Adsense activity is related to what you intend to do in the States, the matter becomes more complicated, it seems. I cannot help you further. Perhaps someone else can, or perhaps you can post another question with more details and a price that makes a researcher eager to help you. As the disclaimer below indicates, nothing here is a substitute for informed professional advice, which you will eventually have to get, but maybe an answer to more detailed question can give you a better preliminary understanding. Good luck, Myoarin |
Subject:
Re: How do I pay less taxes?
From: nata_mcc-ga on 14 Nov 2006 14:18 PST |
Hi there, I'm an accountant from england (who happens to have english immigration law experience!), and your question made me smile! If the tax man in america is anything like the english tax man, i say that you shouldn't even try to be fraudulant when it comes to your taxes. I know you want somebody to come on here and say 'do this illegal thing and they won't tax you or ever find out and if they do they'll have a hard time proving you did it'' but i'm not going to lie to you for $10 - i thought i'd do you a favour and tell you its just not going to work! If there was a way to make a remarkable saving by cheating the tax man, then everyone would be doing it and the tax man would find out and create another law against it. You cannot win. If your business is doing well, then why don't get yourself a good tax advisor who can keep the way you manage your money within the law, yet also take advantage of the avaliable tax reliefs? You could also get a business advisor and get this business up and runnning - i'm pretty sure that if you move to america with this business thats creating so much revenue in one month with only you working on it, then a big may offer you money to buy it off of you. Just remember that good business do get taxed in the USA, but they also get rewarded too. Don't kid yourself on by thinking you can beat the law. I wish you all the best with your move, and with your business :-) Many Thanks, Natalie |
Subject:
Re: How do I pay less taxes?
From: anotherway-ga on 14 Nov 2006 21:23 PST |
Hi Natalie, Thanks for your comments! > "Just remember that good business do get taxed in the USA, but they also get rewarded too." Did you mean that if I pay tax I will get reward from the government? |
Subject:
Re: How do I pay less taxes?
From: frde-ga on 15 Nov 2006 03:44 PST |
Personally I would transfer the 'business' to a Ltd company in a low tax area such as Jersey or The Caymans. I would then pay myself a salary as an employee of the US office of the company. I would call myself Technichal Director - USA Branch - running a payroll is a PITA - but it makes one look normal. With a Ltd company, legally it is a separate entity, while you own it, its income is not your income. You could (ahem) get an exotic mortgage from a friendly overseas bank that just happens to be where your company keeps its reserves on long term deposit. What I've described is 'tax avoidance' not 'evasion', in the UK it is quite common for people to have Ltd companies to hold income. 'Red' Ken Livingstone, the Mayor of London has one. I agree with nata_mcc-ga that it is dumb to try to cheat on taxes, but one can arrange ones affairs in such a way that they are deferred. Also, unlike the UK, US citizens are liable to US taxes regardless of their domicile, I'm not sure about US residents. This is worth checking out, as at some stage you may want to spend a year abroad, during which your company can pay you a spectacular dividend. I am not an accountant - and strongly advize that you find a good accountant outside the USA who is familiar with US regulations. Personally I would base the core operation in an Isle of Man company, then have a UK Ltd company that employs you as their US representative. |
Subject:
Re: How do I pay less taxes?
From: abezon-ga on 18 Nov 2006 15:10 PST |
Ya know, we can't even begin to give you good ideas until we know more about your situation. 1. Where do you live now? A tax treaty may apply to your situation. 2. Is your move to the US permanent or short term? 3. Do you ever plan to apply for a green card? 4. Do you plan to sponsor relatives to the US? 5. What type of business are you planning to establish for the EB-5 visa? 6. If you've got $1M capital to start a business in the US, why are you trying to get sophistocated investment/immigration advice for $10? Cough up the cash & hire some sharp immigration & tax attorneys. |
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