Taxes ! Any tax guru's share some insight!?

[heatking]

Just wondering if anyone knows the cheapest places for taxes in the world? like states with low income taxes and countries with low taxes as well.
 i'm tired of having to pay so much in taxes every year, it feels like robbery. i paid a !$@% load last year for taxes and it sucked its like i worked a few months for free. i know their is ways you can get tax breaks and !$@% like if u have kids or whatever but i think id rather pay more taxes than have kids.
anybody on that tax hustle that can give me some insight? my dad says theres two things your guaranteed to always do in your lifetime and its pay taxes and die. lol but their gotta be a way around it with out going to prison haha

also obama talking about tripling the taxes on people who make over a certain amount of money a year and if that goes through im not trying to be in america any more

any info would be great

 

[girlslovewaffles]

Originally Posted by heatking

Just wondering if anyone knows the cheapest places for taxes in the world? like states with low income taxes and countries with low taxes as well.
 i'm tired of having to pay so much in taxes every year, it feels like robbery. i paid a !$@% load last year for taxes and it sucked its like i worked a few months for free. i know their is ways you can get tax breaks and !$@% like if u have kids or whatever but i think id rather pay more taxes than have kids.
anybody on that tax hustle that can give me some insight? my dad says theres two things your guaranteed to always do in your lifetime and its pay taxes and die. lol but their gotta be a way around it with out going to prison haha

also obama talking about tripling the taxes on people who make over a certain amount of money a year and if that goes through im not trying to be in america any more

any info would be great

shut up and pay your taxes hoser.

 

[heatking]

^ i do pay them...im just trying to figure out where/how i can pay less.
i dont get a refund check every year like you might. i send a check not receive. 

 

[sundoobie]

How to pay less?

-Itemize your deductions like owning a home so you can write off that Mortgage insurance/property taxes, medical, contributions.
-Own a business so you can co-mingle (not legal of course) personal and business expenses.
-Live in a Tax Free State like Nevada or Florida
-Contribute to retirement savings

etc.. etc.. I can go on and on

Taxes are a robbery to the people of this country especially when the Feds limit your deductions because you made a certain amount of income. This is called the Alternative Min Tax which is basically saying if your gross income is this much, you have to pay a minimum amount of taxes no matter what deductions you have.

 

[bjm5295]

getting a refund has very little to do with it. its actually kind of good that you pay at the end of the year, i.e. you're getting the most possible out of your paychecks per week. the goal is to be even: pay none and get none back.

like SunDOOBIE said, you could move to a state-tax-free state. Itemize if possible.

the "tripling taxes" thing is for people who make over 250k(i think?). if you ARE making that much, than you shouldnt have a problem.

 

[heatking]

Originally Posted by SunDOOBIE

How to pay less?

-Itemize your deductions like owning a home so you can write off that Mortgage insurance/property taxes, medical, contributions.
-Own a business so you can co-mingle (not legal of course) personal and business expenses.
-Live in a Tax Free State like Nevada or Florida
-Contribute to retirement savings

etc.. etc.. I can go on and on

Taxes are a robbery to the people of this country especially when the Feds limit your deductions because you made a certain amount of income. This is called the Alternative Min Tax which is basically saying if your gross income is this much, you have to pay a minimum amount of taxes no matter what deductions you have.

i do all of those above xcept i havn't done the retirement savings thing yet. 
i live in fl, i pay a mortgage and etc.

send me a message or post on here if u "can go on and on", im taking notes bro! i appreciate the info! info might help other people as well. 

 

[heatking]

Originally Posted by bjm5295

getting a refund has very little to do with it. its actually kind of good that you pay at the end of the year, i.e. you're getting the most possible out of your paychecks per week. the goal is to be even: pay none and get none back.

like SunDOOBIE said, you could move to a state-tax-free state. Itemize if possible.

the "tripling taxes" thing is for people who make over 250k(i think?). if you ARE making that much, than you shouldnt have a problem.

i'm self employed so i write my own checks. 
as for the tripling taxes thing i do make over 250k this is why im considering other countries to live in but i dont want to pay a @%@# load of taxes. any info would be greatly appreciated! 

also someone was telling me if i hire people i can use that as a deduction or no?

 

[21 world b free 21]

I still don't understand why taxes aren't cost of living adjusted. I make a lot of money living in NYC but it doesn't go very far due to the host cost of everything...Last time I remember looking 150k in NYC was equivalent to 60k in Austin, Texas. Basically  I'm paying a bundle of extra taxes just to live equivalent to someone else living in a different part of country

 

[crcballer55]

Originally Posted by heatking

Originally Posted by bjm5295

getting a refund has very little to do with it. its actually kind of good that you pay at the end of the year, i.e. you're getting the most possible out of your paychecks per week. the goal is to be even: pay none and get none back.

like SunDOOBIE said, you could move to a state-tax-free state. Itemize if possible.

the "tripling taxes" thing is for people who make over 250k(i think?). if you ARE making that much, than you shouldnt have a problem.

i'm self employed so i write my own checks. 
as for the tripling taxes thing i do make over 250k this is why im considering other countries to live in but i dont want to pay a @%@# load of taxes. any info would be greatly appreciated! 

also someone was telling me if i hire people i can use that as a deduction or no?

Is your business incorporated? Have you tried moving it to Delaware to avoid taxes?

I'm not sure if it helps, but if you sell products internationally, you would keep the money in those countries instead of repatriating it. Have you tried that already? You could try something like Google does with the Double Irish & Dutch Sandwich.
http://www.npr.org/blogs/money/2010...-s-tax-tricks-double-irish-and-dutch-sandwich

Another way to limit taxes besides retirement accounts is charitable contributions. Keep in mind though... any tax deductions you take is money you won't have in your pocket afterwards anyways (besides retirement).

 

[rexanglorum]

21 World B Free 21 wrote:

---

I still don't understand why taxes aren't cost of living adjusted. I make a lot of money living in NYC but it doesn't go very far due to the host cost of everything...Last time I remember looking 150k in NYC was equivalent to 60k in Austin, Texas. Basically  I'm paying a bundle of extra taxes just to live equivalent to someone else living in a different part of country


The Federal Tax code has a very anti-urban and anti-coastal bias. The purpose of the tax code, as far as middle class people is concerned, is to put you in an expensive mortgage; marry early in life; avoid going to college; give money to Wall Street and to churn out babies, who will serve as future machine gun fodder and/or payers into the ponzi scheme of social security and medicare. In that sense, Rick Santorum has already won, as far the tax code is concerned.

With that said, the tax code has some de facto cost of living adjustments. If you live in a high wage and high income area, you will likely pay a larger mortgage for a similar property in a low wage-low income place. If you are renting, you can get a renter's credit on your California income taxes (I do not know about New York State). Federal tax payers can deduct the larger mortgage interest and they can also deduct State taxes, which tend to be higher in the high cost of living Blue States.

There still should be Cost of living adjustments for certain regions but what is really needed, for tax payers from every part of the country, are inflation adjustments to tax brackets. With inflation, government is able to push people into higher tax brackets, with them getting any wealthier.

 

[heatking]

Originally Posted by crcballer55

Originally Posted by heatking

Originally Posted by bjm5295

getting a refund has very little to do with it. its actually kind of good that you pay at the end of the year, i.e. you're getting the most possible out of your paychecks per week. the goal is to be even: pay none and get none back.

like SunDOOBIE said, you could move to a state-tax-free state. Itemize if possible.

the "tripling taxes" thing is for people who make over 250k(i think?). if you ARE making that much, than you shouldnt have a problem.

i'm self employed so i write my own checks. 
as for the tripling taxes thing i do make over 250k this is why im considering other countries to live in but i dont want to pay a @%@# load of taxes. any info would be greatly appreciated! 

also someone was telling me if i hire people i can use that as a deduction or no?

Is your business incorporated? Have you tried moving it to Delaware to avoid taxes?

I'm not sure if it helps, but if you sell products internationally, you would keep the money in those countries instead of repatriating it. Have you tried that already? You could try something like Google does with the Double Irish & Dutch Sandwich.
http://www.npr.org/blogs/money/2010...-s-tax-tricks-double-irish-and-dutch-sandwich

Another way to limit taxes besides retirement accounts is charitable contributions. Keep in mind though... any tax deductions you take is money you won't have in your pocket afterwards anyways (besides retirement).

yeah its incorporated. i have a LLC set up. I havn't heard of Delaware whats up with that? I live in FL so i already don't pay state income taxes unless you are talking about something else?
as for the irish sandwhich wouldn't i need to hire people over their for that to work?

 

[crcballer55]

Originally Posted by Rexanglorum

21 World B Free 21 wrote:

---

I still don't understand why taxes aren't cost of living adjusted. I make a lot of money living in NYC but it doesn't go very far due to the host cost of everything...Last time I remember looking 150k in NYC was equivalent to 60k in Austin, Texas. Basically  I'm paying a bundle of extra taxes just to live equivalent to someone else living in a different part of country

The Federal Tax code has a very anti-urban and anti-coastal bias. The purpose of the tax code, as far as middle class people is concerned, is to put you in an expensive mortgage; marry early in life; avoid going to college; give money to Wall Street and to churn out babies, who will serve as future machine gun fodder and/or payers into the ponzi scheme of social security and medicare. In that sense, Rick Santorum has already won, as far the tax code is concerned.

With that said, the tax code has some de facto cost of living adjustments. If you live in a high wage and high income area, you will likely pay a larger mortgage for a similar property in a low wage-low income place. If you are renting, you can get a renter's credit on your California income taxes (I do not know about New York State). Federal tax payers can deduct the larger mortgage interest and they can also deduct State taxes, which tend to be higher in the high cost of living Blue States.

There still should be Cost of living adjustments for certain regions but what is really needed, for tax payers from every part of the country, are inflation adjustments to tax brackets. With inflation, government is able to push people into higher tax brackets, with them getting any wealthier.


The tax code actually encourages people to take out loans to go to college since you can deduct the interest similar to mortgage payments.

Originally Posted by crcballer55

Originally Posted by heatking

i'm self employed so i write my own checks. 
as for the tripling taxes thing i do make over 250k this is why im considering other countries to live in but i dont want to pay a @%@# load of taxes. any info would be greatly appreciated! 

also someone was telling me if i hire people i can use that as a deduction or no?

Is your business incorporated? Have you tried moving it to Delaware to avoid taxes?

I'm not sure if it helps, but if you sell products internationally, you would keep the money in those countries instead of repatriating it. Have you tried that already? You could try something like Google does with the Double Irish & Dutch Sandwich.
http://www.npr.org/blogs/money/2010...-s-tax-tricks-double-irish-and-dutch-sandwich

Another way to limit taxes besides retirement accounts is charitable contributions. Keep in mind though... any tax deductions you take is money you won't have in your pocket afterwards anyways (besides retirement).

yeah its incorporated. i have a LLC set up. I havn't heard of Delaware whats up with that? I live in FL so i already don't pay state income taxes unless you are talking about something else?
as for the irish sandwhich wouldn't i need to hire people over their for that to work?



I'm not sure on the details of international tax shelters. I'm nowhere near as big as Google

.

Are you too big for an S-Corp? C-Corps are typically the ones who incorporate in Deleware. Honestly, I used to know some of the tax implications of organizing out of state but I haven't needed them so I'm the wrong person to offer advice on that. Try hitting up Google for some of the basic stuff or consulting your CPA. He should be offering you tax advice while he's doing your taxes anyways.

 

[socluis90]

this might interest you. saw this article today.

Taxes push some Americans to take a hike
Record numbers of people have found a way to avoid the IRS forever — giving up their U.S. citizenship. 'A no-brainer'


http://finance.yahoo.com/...cans-hike-204320491.html
deals mostly with people working or doing business abroad and getting taxed that money here. 

 

[asianplayer]

At first I was going to say use a flexible spending account, set up IRAs. But with your high income, maybe based your business somewhere in the Caribbeans or some island outside of the U.S. I remember taking an international business course and the professor told us something about businesses would just setup a mailing address somewhere outside of the U.S. and they would be able to avoid paying certain taxes.

 

[buggz05]

Bookmarking/checking in. #bgz05

 

[heatking]

Originally Posted by socluis90

this might interest you. saw this article today.

Taxes push some Americans to take a hike
Record numbers of people have found a way to avoid the IRS forever — giving up their U.S. citizenship. 'A no-brainer'


http://finance.yahoo.com/...cans-hike-204320491.html
deals mostly with people working or doing business abroad and getting taxed that money here. 

This is interesting but its mostly about people who are already living abroad that still have to pay US taxes to keep their citizenship so they just give up their citizenship because they already live abroad.
I mean anywhere you go in the world your gonna have to pay taxes. My original post question was what country or state would be the cheapest or where i would pay less. 

if in america i'd have to pay for example 100k for taxes at the end of the year  but in italy on the same year and income i'd only have to pay half that, i'm gonna move to italy. just an example. i know some places in europe charge more than us here in USA. so thats why im asking if anyone knows.

 

[MetalMario]

I'm a tax preparer in Cali, today's not so busy for me... people coming in getting more extensions than actually filing.

funny how your complaining and your in florida already, but for your original question, stay clear of Scandinavian countries their tax days (ours in April 15) is somewhere in september/oct meaning they have to work their butts off 9 months outta 12 to pay for the country taxes. England is generally the same as US, actually would like to know about Germany situation since that country is better economically right now... compared to other European nations

like you said france and Italy are cool about taxes and isn't a big hustle. what France has established is a work week of 35 hours is considered full time that's why you see movies/TV/pop culture of people at cafe drinking because they literally have nothing to do so they can't charge much if that makes cents lol

as for things said in here Rexanglorum is right, crcballer too, the tripling tax thing is for the more wealthy and super wealthy because once again they can afford it

 

[heatking]

@ M4riol i dont know if italy or france has lower income tax i was just using that as en example because i want to find a place where their is little or no income tax. sorry for the confusion

 

[MetalMario]

Well I know there are countries that have little to no tax but tax has to exist somewhere doesn't it? They charge it in everything you do whether you know or not. That's why some places apples are expensive since they charge the company on taxes instead of you and relay back to you to cover the blow. Business is business in the end

Pros and cons for everything really. Sweden is high like I mentioned but universal healthcare and things they offer make up for it. Not to mention have you seem their jails? Paradise

 

[rexanglorum]

crcballer55 wrote:

---

Originally Posted by Rexanglorum

The tax code actually encourages people to take out loans to go to college since you can deduct the interest similar to mortgage payments.

  

You are sharp, I tired to bury my weakest point in the middle of that list. It is true that a person can deduct student loan interest. I would say that because of quasi fraud with regard to refinancing money write offs, the opportunity cost of home equity money directs it away from higher education and into granite counters or simple shopping sprees. The point about higher education aside, the current tax code has a very natalistic bias, so I had to take a swipe at candidate Santorum because he feels that the Child Tax Credit must be tripled.


As far as the Buffet rule is concerned (the tripling of taxes on the rich), I am opposed to it. The reason why is not empathy for the rich but sympathy for tax payers and for workers. The Buffet rule is a hike in the capital gains rate and it means lower revenues for the US Treasury and less investment into productive enterprises (why risk your money on a start up company that will create good jobs? If it fails you loss all of your principle and if it does well you are now paying triple the tax rate as before).

 

[oneand23]

Hello OP,I've taken a couple of minutes to read the thread and I believe I can help a bit. As far as what state you can move to to avoid STATE taxes, Florida and Texas are a couple of them. One thing you must be sure of is that it is best if you live in the state that you are doing business in. If not you may be subject to paying taxes in more than one state. California is that way. If you are established in one state but make money in California, you still have to pay state taxes for the money you made in California.I also saw you have an LLC set up. The best way to go is C-Corp. Why? Liability protection. If you are dealing with the public, you ABSOLUTELY want to do a C-Corp. C-Corps give you protect your personal assets in case something goes wrong. For example, let's say you sell candy. It turns out that your manufacturer messed up in the processing and gave you candy that caused harm to your customers. Your customers will sue you for 1 million dollars. If you are a C-Corp, the C-Corp gets sued and not you. What will happen if your company can't afford to pay the 1 million, then it files for bankruptcy. The C-CORP FILES FOR BANKRUPTCY AND NOT YOU. You get to keep all of your personal assets (car, house, etc.)S-Corps are really for passive income. They are ideal when you are not actively participating in the business. A good fit for an S-Corp is with rental property, for example.You could also set up a Limited Partnership (L.P.) but those are a nightmare to work with. Very complex stuff. An LLC has never seen a lawsuit against them so there's no telling what the real protection is there unless you want to be the first to find out.Another cool trick with corps is the sheltering of up to 250k by creating a special retained earnings account. Here you are able to keep some of your profit tax free. The best part about having an established Corporation is that the target on your back is now removed. Schedule C/Sole Proprietors are the most audited people. I can go on for days about how to save on taxes. Remember also that you will always pay taxes. You can never really completely evade taxes but you can definitely minimize your tax liability. Let me know if you have any questions. I will be more than happy to answer them for you.

 

[essential1]

Wait you live in Florida, where you don't pay a state tax, and are complaining about federal tax... The only reason you are is because you make over a certain amount..

And if you make over $250K, your personal tax rate goes from 35% to 39% federal.. OH NOEZZ.. Feels like you are working a few months for free

. Robbery

...
News flash everyone pays some sort of taxes (the people who don't pay federal taxes pay a significant amount of taxes in other areas that make it virtually no difference)..  The person making $30K and paying a less rate, is much worse off than you are.

Yet you also try every loophole to get around paying taxes, and still complain..


My answer is goodbye and good $%!+%%! riddance.