Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
My 65 year old mother has lost almost all of her retirement savings to either con artists or get rich schemes. She has 13k left, 5k of which I recently sent her from my paltry earnings. She promptly deposited this money is some type of offshore account in the Bahamas. She is planning to funnel all her remaining "corporation earnings" from her self employment into this account as a tax shelter. Some of her friends have hundreds of thousands in this Bank of the Bahamas and use it to avoid paying taxes. She believes this is safe and she only pays taxes on the money her own registered "corporation" pays her from this offshore account. Are these offshore banks for real, or only is it just another scheme to drive the unsuspecting into a pennyless old age?

Thanks for any information you can give.

Whiney

Print the post Back To Top
No. of Recommendations: 0
[[My 65 year old mother has lost almost all of her retirement savings to either con
artists or get rich schemes. She has 13k left, 5k of which I recently sent her from
my paltry earnings. She promptly deposited this money is some type of offshore
account in the Bahamas. She is planning to funnel all her remaining "corporation
earnings" from her self employment into this account as a tax shelter. Some of
her friends have hundreds of thousands in this Bank of the Bahamas and use it to
avoid paying taxes. She believes this is safe and she only pays taxes on the
money her own registered "corporation" pays her from this offshore account.
Are these offshore banks for real, or only is it just another scheme to drive the
unsuspecting into a pennyless old age?]]

There are many different "off shore" schemes and scams out there. Since I don't know what your Grannie has gotten herself into, I certainly can't comment on her program. My guess is that in her zeal to avoid taxes, she has gotten herself into another "scheme" that may do nothing but cost her money after all is said and done. But again, that's just a guess.

TMF Taxes
Roy

Want to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. It'll help you with your 1998 taxes, and it's never to early to start planning for your 1999 taxes. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Pay special attention to the "archives" section. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
Print the post Back To Top
No. of Recommendations: 0
Your grannie may qualify to deduct the amounts she lost to con artists as a casualty/theft loss on Schedule A. She has to claim the losses in the year that she "discovered" that she had been conned. If she has already filed the tax return for that year, it may be worthwhile to amend it. Amended returns must be filed within three years in order to claim a refund.

In many of these cases where the elderly lose all their life savings to con artists, the casualty loss results in a "net operating loss", which can be carried back three years to recapture prior taxes and then forward for fifteen years and used against income taxes in future years. If her losses were great enough, your grannie may never have to pay taxes again.

Tell her to get with the program, bring her money back to the USA, claim her tax benefits, and NEVER, NEVER, NEVER give anyone she doesn't know any of her money again. If she doesn't follow your advice, it may be time to think about getting a conservator for her financial affairs.

You would be amazed how many of the elderly are being conned these days. Scamming the elderly is the biggest industry in our country.

Good luck!

Tax Attorney
Print the post Back To Top
No. of Recommendations: 0
Oops! I see that it's your mother, not your grandmother. All the more reason to get mom's finances under control, unless you want to continue to spend your "paltry earnings" bailing her out, leaving YOU penniless in your old age.

Tax Attorney
Print the post Back To Top