Fairly detailed and complex scenario man.... I'm not familiar with the exact IRS rulings on US citizens - it's a complex area and would need serious professional advice.
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Originally Posted by TheDoc
If I lived in a country that had lower tax, I would have to pay the difference to the American Gov on the money I personally earned.
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Maybe
Depends if there is a dual taxation treaty in place. It would not be normal to have any such treaty where there was little or no taxation. There are allowances from the IRS for foreign residency - something like $80K/year, but annual filings of all foreign corps are needed.
To be totally legitimate - there is nothing wrong for any US person to live in a no tax area. By doing do, they will get the $80K allowance and just have to report any income and pay whatever tax is due on that. They would not be paying any local taxes in the no tax area.
It may not be a coincidence - and, seriously may be true, but noticed most US folks always seem to earn around $75K year when living abroad
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Originally Posted by TheDoc
To bring money in, is were alarms are set off. The visa cards often aren't in your personal name, which is why it works as long as you don't go stupid.
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Dangerous area and one which is being monitored regularly. Any cards used in US territory are easily tracked. They would be blocked at the OS bank level and no account information would be provided by any OS bank, but I'm sure they have other ways to deal with that without working a dead end elsewhere.
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Originally Posted by TheDoc
2257, is a hitch.. If you own, even lets say .1% of a company that is adult but you are American, are you responsible? When do you become responsible? If you get a paycheck or a dividend?
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Can't say about 2257 - doubt they have included that element, but, rest assured, they would probably make it up as they proceeded with some action.
From a tax angle, yes, that .1% would be relevant on filings and you are responsible for declaring that interest. But...there are sub-clauses to this and can't get specific, but relate to the capital of the corp and a few more factors. This is something for a US tax accountant.
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Originally Posted by TheDoc
Isn't the proper way to do this to open a foundation, transfer the money to gold, move it to the foundation, convert it back and pay your self tax free?...
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Wish it was the solution
Na.. any "benefits" recieved would be taxable.