Tax Shelters

txflyer

txflyer

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Fly it like you STOL it ♦
Do they even exist anymore?

Wrong board maybe, but we can't talk about flying 24/7... ;)

Side note: Did y'all know banks in South Africa are paying 6% on MM insured accounts?
 
txflyer said:
Do they even exist anymore?

Wrong board maybe, but we can't talk about flying 24/7... ;)

Side note: Did y'all know banks in South Africa are paying 6% on MM insured accounts?
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You do realize that the IRS requires disclosure of foreign accounts?
 
asgcpa said:
You do realize that the IRS requires disclosure of foreign accounts?
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Of coarse.

But 6% is better than .05 even if you pay a little more tax. :wink2:

I'm curious what the crème de la crème are doing to 'enhance' their taxes and income.
 
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If you have to ask, you ain't eligible. Now fork yours over so they don't come looking for mine.:wink2:
 
txflyer said:
Of coarse.

But 6% is better than .05 even if you pay a little more tax. :wink2:

I'm curious what the crème de la crème are doing to 'enhance' their taxes and income.
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Might want to do some studying on currency exchange rates, relative inflation rates, and interest rates.
 
JoseCuervo said:
Might want to do some studying on currency exchange rates, relative inflation rates, and interest rates.
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Yes I do need to study.

I know there must be a few here who have more than two nickels to rub together, we're all rich pilots right? :lol: and it sure beats talking finances on facebook.

The guy with the G5, I want to talk to that guy. I want to mirror him. ;)
 
asgcpa said:
You do realize that the IRS requires disclosure of foreign accounts?
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I know, darn it..... :mad2:

I don't pay taxes. I give all my tax money to the church. They can put it to better use. It sometimes hurts, but in the long run I feel better.
 
txflyer said:
Do they even exist anymore?

Wrong board maybe, but we can't talk about flying 24/7... ;)

Side note: Did y'all know banks in South Africa are paying 6% on MM insured accounts?
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South Africa has lots of capital controls and the Rand isn't all that stable.
 
Puerto Rico was/is offering very attractive tax rates to move business there. That's about the only tax shelter I've heard of recently but their economy is in shambles.
 
txflyer said:
Puerto Rico was/is offering very attractive tax rates to move business there. That's about the only tax shelter I've heard of recently but their economy is in shambles.
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Several of my flying buddies have moved their businesses to PR - very attractive incentives right now assuming you will eventually create local jobs.

Worth a deep look if a person has a business with some level of mobility or that is not location-centric, or if looking to retire maybe. Stick to the nice and safe parts and it seems like a pretty good deal. Apparently real estate is still reasonable with the influx of new money but that can't last for ever. Definitely looks pretty.

'Gimp
 
I think agricultural banking may be the best thing to do it Hitlery gets elected.
 
camel said:
But the South African rand (ZAR) lost around 11% in the last year against the US dollar, so that would be a net loss. http://www.bloomberg.com/quote/USDZAR:CUR
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Sure, but the last couple of years were a bit unique because of an electricity crises (mostly solved now), and it priced in a correction that was due for a long time. The ZAR was getting very strong compared to the US dollar for a while there.

The ZAR should be declining against the USD at the differential rate of inflation. South African inflation is 4.4%. US inflation is 1.5%. So the ZAR should be declining at 2.9% on average, otherwise it gains in relative strength. You need to subtract this 2.9% from every interest rate you're getting.

So if you're making 6%, you're only really getting 3.1%. You can do better on Lending Club than that.

However, 6% is low. ABSA pays 7% on 12-month savings accounts and 7.65% on > 19 months.

Or buy property there and rent it out - you can fairly reliably make 0.85% per month (10.2% per year) if you buy in the right areas, and you have capital escalation on top of that to protect you against inflationary effects.
 
Hedge funds or foreign real estate investment partnerships. But make sure you hold your investment through a foreign shell corporation in a no-tax jurisdiction and layer your ownership through a series of nominee entities also domiciled in no-tax jurisdictions. Claim none of the income on your US return. And you're done. Of course, you pay your tax savings to attorneys and accountants, but IT'S WORTH IT! Anything to stick it to the man.
 
asgcpa said:
You do realize that the IRS requires disclosure of foreign accounts?
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They do, although you aren't taxed on foreign income until you bring it back in to the US.

Wearable gold rules. I've heard.
 
Sac Arrow said:
Wearable gold rules. I've heard.
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Thats not even completely safe.
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texasag93 said:
Captive Insurance companies.
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I do something like that, it's actually a reinsurance company for products we sell such as warranties and GAP insurance. It isn't about avoiding taxes, it's a way for the money to hopefully accumulate and then be taxed at capital gains rates, if there are any gains. :) Sometimes it's a loser! :mad2:
 
N747JB said:
I do something like that, it's actually a reinsurance company for products we sell such as warranties and GAP insurance. It isn't about avoiding taxes, it's a way for the money to hopefully accumulate and then be taxed at capital gains rates, if there are any gains. :) Sometimes it's a loser! :mad2:
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We're looking at a very similar deal right now.
 
Sam D said:
We're looking at a very similar deal right now.
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I have a friend that insures his own business with a reinsurance company, all except health insurance. He pays his company a pretty high rate to his reinsurance company, that in turn carries some type of a stop loss policy in the event of a large claim. Every 12 months or so, if the losses are low, he writes himself a decent check! :D I never dug to deeply into it, but he's very successful and not prone to BS a lot. ;)
 
N747JB said:
I have a friend that insures his own business with a reinsurance company, all except health insurance. He pays his company a pretty high rate to his reinsurance company, that in turn carries some type of a stop loss policy in the event of a large claim. Every 12 months or so, if the losses are low, he writes himself a decent check! :D I never dug to deeply into it, but he's very successful and not prone to BS a lot. ;)
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If I understand these set-ups, the basic benefit over simply raising your deductible is the ability to currently deduct the "premiums" you pay the captive vs getting the deduction when the loss is actually incurred. Otherwise, if you're adequately capitalized, you could just have the stop loss policy and be done with it.
 
One tactic that may work for us is we created a family limited partnership that's managed by an LLC.

Now that my Sister/business partner has passed away, the business qualifies for limited partnership discounts on the value of the 706 estate form assets. The way it works is the IRS places a value on the loss of a partner and discounts by percentage the value of the shares. We are being audited and waiting on a closing letter and word of those discounts from IRS.

Those discounts add up to a lot of money.
 
txflyer said:
One tactic that may work for us is we created a family limited partnership that's managed by an LLC.

Now that my Sister/business partner has passed away, the business qualifies for limited partnership discounts on the value of the 706 estate form assets. The way it works is the IRS places a value on the loss of a partner and discounts by percentage the value of the shares. We are being audited and waiting on a closing letter and word of those discounts from IRS.

Those discounts add up to a lot of money.
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I am forming one right now, but it is not to pull money out. It is to shield assets from medical lawsuits.
 
texasag93 said:
I am forming one right now, but it is not to pull money out. It is to shield assets from medical lawsuits.
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Another vehicle that's interesting is an ILIT or irrevocable life insurance Trust.

You buy a life policy and assign it to an ILIT. You can also put any other assets into it.

The Trust is irrevocable so it is not part of your estate when you die.
 
txflyer said:
Another vehicle that's interesting is an ILIT or irrevocable life insurance Trust.

You buy a life policy and assign it to an ILIT. You can also put any other assets into it.

The Trust is irrevocable so it is not part of your estate when you die.
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The cost of the FLP is stupid high with too many investment restrictions. ILITs have similar issues.

Pick your poison.
 
texasag93 said:
The cost of the FLP is stupid high with too many investment restrictions. ILITs have similar issues.

Pick your poison.
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Our non-distributed partnership funds are invested like any other portfolio.

I know not of these restrictions you speak of. :dunno:
 
asgcpa said:
You do realize that the IRS requires disclosure of foreign accounts?
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Actually it's the Department of the Treasury, not the IRS, that wants you to file Form TD F 90-22.1. It's easy.

And even easier, you don't have to file if the accounts amount to less than $10k. That's a convenience for me because I have an account worth about $50 that I'm unable to close.

edit: just realized you are a cpa, so you would know this better than me.
 
Sac Arrow said:
They do, although you aren't taxed on foreign income until you bring it back in to the US.

Wearable gold rules. I've heard.
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Hmmmm....I've heard that US residents and citizens are subject to tax on worldwide income......
 
NoHeat said:
Actually it's the Department of the Treasury, not the IRS, that wants you to file Form TD F 90-22.1. It's easy.

And even easier, you don't have to file if the accounts amount to less than $10k. That's a convenience for me because I have an account worth about $50 that I'm unable to close.

edit: just realized you are a cpa, so you would know this better than me.
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Yes it's the DEPT of Treasury, but, who is the IRS part of? You still have to disclose existence in a sense on your 1040 Schedule B. And there are new requirements within the last couple of years....
 
txflyer said:
One tactic that may work for us is we created a family limited partnership that's managed by an LLC.

Now that my Sister/business partner has passed away, the business qualifies for limited partnership discounts on the value of the 706 estate form assets. The way it works is the IRS places a value on the loss of a partner and discounts by percentage the value of the shares. We are being audited and waiting on a closing letter and word of those discounts from IRS.

Those discounts add up to a lot of money.
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Let us know the outcome ....
 
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