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Author: adumortier Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121585  
Subject: Tax Avoidance Date: 4/7/2002 5:01 AM
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Hello Fools,

Judging from the standard posts on this board, I think this one is a little out of the ordinary. Nevertheless, I couldn't think of a better place to go...

I am looking for advice concerning tax avoidance. Are there any viable strategies to pay minimal/ zero capital gains tax on securities transactions that can be implemented by the individual investor?

In theory, you can create an offshore vehicle for buying and selling securities and the capital gains resulting from trading through this vehicle may be non-taxable. Ultimately, though, it seems you are left with the problem of how to access those funds without these funds falling under 'any and all worldwide income'.

Any Foolish ideas/ resources?

Thanks, AD.
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Author: MadCapitalist Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 60056 of 121585
Subject: Re: Tax Avoidance Date: 4/7/2002 9:31 AM
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Any Foolish ideas/ resources?

If taxes are that important to you, then get a tax lawyer.

The only strategies I use are the standard ones, like investing in a Roth IRA and/or tax deferred investment vehicles, as well as investing long-term in taxable accounts to reduce the capital gains rate.

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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 60057 of 121585
Subject: Re: Tax Avoidance Date: 4/7/2002 10:20 AM
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I am looking for advice concerning tax avoidance. Are there any viable strategies to pay minimal/ zero capital gains tax on securities transactions that can be implemented by the individual investor?

Under current law, dying still works. The heirs receive the securities with a current value basis, and the taxable gain disappears. Unfortunately, so does the investor.

In theory, you can create an offshore vehicle for buying and selling securities and the capital gains resulting from trading through this vehicle may be non-taxable. Ultimately, though, it seems you are left with the problem of how to access those funds without these funds falling under 'any and all worldwide income'

As noted before, if you want to pursue this find a good lawyer. Be prepared to pay heftily, and remind yourself daily that "if it sounds too good to be true, it is." I offer this caution because there are a lot of hucksters operating who'd be glad to take your money and still leave you owing taxes. As a starter, I suggest you ignore anything you see on the Internet about "proven methods."

Phil Marti

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Author: RiverCityFool Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 60070 of 121585
Subject: Re: Tax Avoidance Date: 4/7/2002 6:05 PM
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Tax avoidance is an area rife with scams and "advice" likely to land you in hot water.

Do take all reasonable deductions. Look into deferred compensation plans.

But offshore stuff? Very likely to be a scam. See http://www.quatloos.com/taxscams/blackhol.htm for more.

If you still want to look into this, see http://www.offshorebusiness.com/ for more info -- but be sure to check out their "Hall of Shame" to see who you could be dealing with.

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Author: galeno Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 60440 of 121585
Subject: Re: Tax Avoidance Date: 4/22/2002 7:20 PM
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There are many ways you could do this. The easiest way is to use a IBC (International Business Corporation) and a TRUSTED foreigner with no USA ties to be the stockholder and signiture person on this IBC and its bank, brokerage and real estate investments. This way, you can answer truthfully that you have NO signature status on any foreign accounts.

This IBC can then get a debit card(s) in its name or the trusted foreigner's name and you use it in the USA or anywhere else in the world.

Everybody's situation is different but as there are 99 ways to skin a cat, there's 999 ways to accomplish what you want.



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Author: frankdancer Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 60479 of 121585
Subject: Re: Tax Avoidance Date: 4/25/2002 1:53 PM
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Thanks RiverCity Fool for post 60070, a must read and heed for anyone
contemplating going off shore.

Bottom Line == Don't mess with the IRS

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