Ok, lets take the tax questions here instead. And maybe not just for the UKs!
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Ok, lets take the tax questions here instead. And maybe not just for the UKs!
Quote:
Originally Posted by Adster
Even offshore accounts SHOULD be declared to the IRS but you are taxed on the interest earned in your account and not the total amount of your account. But yes, once you bring it into the UK, you would be charged at 40% if you told them/they found out.
But if you bought a property abroad and kept all monies outside of the UK you wouldn't be charged the full 40%.
No doubt we'll have to pay some tax, but minimising it is sensible and won't leave you feeling 'raped' by good old Gordy Brown.
Reckon half anf half is the way to go, cash in a little at a time, get good advice from an accountant/tax expert, pay enough taxes legally and sleep well at night. The famous folk like Sean Connery and George Michael have the right idea by only staying in the UK no more than 83 days a year and avoid paying huge taxes.
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From Melg:
My husband is a UK chartered accountant and he knows a bit about this - Adster, in the main , is right - the 40% tax is not necessarily the case though - it very much depends on just how much you bring back to the UK (the rate of tax would be dependent on your total income for the year with 40% tax being the highest rate of tax). You can use up the allowances of yourself and also your spouse too (depending on your personal income levels), you can also gift money to friends and family up to about 3,000 GBP which doesn't attract tax (but is a PET, potentially exempt transfer under inheritance tax).
Adster is correct, you are taxed on the monies you send back to the UK - you SHOULD declare your offshore accounts to the Revenue but you only need to declare the INTEREST in those accounts (and even then you don't pay tax on it unless it is REMITTED, or sent, to the UK).
Trusts are another way in which you can protect assets and at the same time gain an income (of sorts) and also minimising your tax liability.
Pensions are another way of minimising your tax liability.
The 83 days a year outside the UK suggestion Adster is slightly incorrect. It is actually 183 days per year or an average of 91 days per year in any 4 year period. If you are in the UK for 183 days or more you will always be resident and subject to taxes. What the "stars" do is they ensure they aren't in the UK for 183 days in any year and that they, on a 4 year average aren't in the UK for more than 91 days in any given year (so your numbers work Adster but aren't quite right).
We no longer live in the UK so he told me to add this caveat as he hasn't practiced or followed the tax legislation for quite some time.
Hope this helps at least a little to some of you.
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Another thing you COULD do is have the money offshore, incorporate a property investment company, wire funds to the company in the UK (this could be your personal purchase of share capital which I don't think is taxable) and buy property (you can get loans to do so and the loan interest is set against the income) - you have the benefit of capital appreciation of the properties and the offset of interest against the income.
It is more complicated than that but I believe it also works - AND you have your money working for you.
You could also take a trip offshore, take a load of money out, bring it back to the UK, exchange it and the IR will be none the wiser (this isn't legal but chances of being caught would be minimal) - don't tell hubby I said this though
Re paying the 40%..... why do you think we LEFT the UK ?
Raditz, what do you say about the tax in Sweden? Should be capital gains, 30%, right?
K
Anybody in UK know any good tax advisors, I'm going to need help before i make any expensive mistakes.
neno How much to build a better team to go with that football stadium.
I think the US government should put a Lien on the entire country of Iraq . . .and then lean on them to repay the cost of removing Saddam. I'll take my payment in $1 a gallon gasoline for say . . .the next ten years.
It sucks to be me . . .Federal looks like a definite 35% and living in California . . .tack on another 9.3% . . .definitely not calling H&R Block.:mad3:Quote:
Individual Income Tax Rates-2006
STATE INDIVIDUAL INCOME TAXES
(Tax rates for tax year 2006 -- as of January 1, 2006)
---Tax Rates---
# of
--Income Brackets--
---Personal Exemption---
Federal Tax
State
Low
High
Brackets
Low
High
Single
Married
Child.
Ded.
ALABAMA 2.0 - 5.0 3 500 (b) - 3,000 (b) 1,500 3,000 300 *
ALASKA No State Income Tax
ARIZONA 2.87 - 5.04 5 10,000 (b) - 150,000 (b) 2,100 4,200 2,300
ARKANSAS (a) 1.0 - 7.0 (e) 6 3,399 - 28,500 20 (c) 40 (c) 20 (c)
CALIFORNIA (a) 1.0 - 9.3 (x) 6 6,319 (b) - 41,477 (b) 87 (c) 174 (c) 272 (c)
COLORADO 4.63 1 -----Flat rate----- -----------None-----------
CONNECTICUT 3.0 - 5.0 2 10,000 (b) - 10,000 (b) 12,750 (f) 24,500 (f) 0
DELAWARE 2.2 - 5.95 6 5,000 - 60,000 110 (c) 220 (c) 110 (c)
FLORIDA No State Income Tax
GEORGIA 1.0 - 6.0 6 750 (g) - 7,000 (g) 2,700 5,400 3,000
HAWAII 1.4 - 8.25 9 2,000 (b) - 40,000 (b) 1,040 2,080 1,040
IDAHO (a) 1.6 - 7.8 8 1,159 (h) - 23, (h) 3,300 (d) 6,600 (d) 3,300 (d)
ILLINOIS 3.0 1 -----Flat rate----- 2,000 4,000 2,000
INDIANA 3.4 1 -----Flat rate----- 1,000 2,000 1,000
IOWA (a) 0.36 - 8.98 9 1,269 - 57,106 40 (c) 80 (c) 40 (c) *
KANSAS 3.5 - 6.45 3 15,000 (b) - 30,000 (b) 2,250 4,500 2,250
KENTUCKY 2.0 - 6.0 6 3,000 - 75,000 20 (c) 40 (c) 20 (c)
LOUISIANA 2.0 - 6.0 3 12,500 (b) - 25,000 (b) 4,500 (i) 9,000 (i) 1,000 (i) *
MAINE (a) 2.0 - 8.5 4 4,550 (b) - 18,250 (b) 2,850 5,700 2,850
MARYLAND 2.0 - 4.75 4 1,000 - 3,000 2,400 4,800 2,400
MASSACHUSETTS (a) 5.3 1 -----Flat rate----- 3,575 7,150 1,000
MICHIGAN (a) 3.9 1 -----Flat rate----- 3,100 6,200 3,100
MINNESOTA (a) 5.35 - 7.85 3 20,510 (j) - 67,360 (j) 3,300 (d) 6,600 (d) 3,300 (d)
MISSISSIPPI 3.0 - 5.0 3 5,000 - 10,000 6,000 12,000 1,500
MISSOURI 1.5 - 6.0 10 1,000 - 9,000 2,100 4,200 1,200 * (s)
MONTANA (a) 1.0 - 6.9 7 2,300 - 13,900 1,900 3,800 1,900 * (s)
NEBRASKA (a) 2.56 - 6.84 4 2,400 (k) - 26,500 (k) 103 (c) 206 (c) 103 (c)
NEVADA No State Income Tax
NEW HAMPSHIRE State Income Tax is Limited to Dividends and Interest Income Only.
NEW JERSEY 1.4 - 8.97 6 20,000 (l) - 500,000 (l) 1,000 2,000 1,500
NEW MEXICO 1.7 - 5.3 4 5,500 (m) - 16,000 (m) 3,300 (d) 6,600 (d) 3,300 (d)
NEW YORK 4.0 - 6.85 5 8,000 (n) - 500,000 (n) 0 0 1,000
NORTH CAROLINA (o) 6.0 - 8.25 4 12,750 (o) - 120,000 (o) 3,300 (d) 6,600 (d) 3,300 (d)
NORTH DAKOTA 2.1 - 5.54 (p) 5 29,700 (p) - 326,450 (p) 3,300 (d) 6,600 (d) 3,300 (d)
OHIO (a) 0.712 - 7.185 9 5,000 - 200,000 1,300 (q) 2,600 (q) 1,300 (q)
OKLAHOMA 0.5 - 6.25 (r) 8 1,000 (b) - 10,000 (b) 1,000 2,000 1,000 * (r)
OREGON (a) 5.0 - 9.0 3 2,650 (b) - 6,550 (b) 159 (c) 318 (c) 159 (c) * (s)
PENNSYLVANIA 3.07 1 -----Flat rate----- -----------None-----------
RHODE ISLAND 25.0% Federal tax liability (t) --- --- --- ---
SOUTH CAROLINA (a) 2.5 - 7.0 6 2,570 - 12,850 3,300 (d) 6,600 (d) 3,300 (d)
SOUTH DAKOTA No State Income Tax
TENNESSEE State Income Tax is Limited to Dividends and Interest Income Only.
TEXAS No State Income Tax
UTAH 2.30 - 7.0 6 863 (b) - 4,313 (b) 2,475 (d) 4,950 (d) 2,475 (d) * (u)
VERMONT (a) 3.6 - 9.5 5 29,900 (v) 326,450 (v) 3,300 (d) 6,600 (d) 3,300 (d)
VIRGINIA 2.0 - 5.75 4 3,000 - 17,000 900 1,800 900
WASHINGTON No State Income Tax
WEST VIRGINIA 3.0 - 6.5 5 10,000 - 60,000 2,000 4,000 2,000
WISCONSIN 4.6 - 6.75 4 8,840 (w) - 132,580 (w) 700 1,400 400
WYOMING No State Income Tax
-
DIST. OF COLUMBIA 4.5 - 9.0 ) 3 10,000 - 30,000 1,370 2,740 1,370
Here's FEDERAL
Federal Tax Brackets - Edward Jones: Making Sense of Investing
Tax Brackets for 2005: Individuals
Marginal
Rate Single Married Filing
Jointly Head of
Household Married Filing
Separately
10% 0 -
7,300 0 -
14,600 0 -
10,450 0 -
7,300
15% 7,300 -
29,700 14,600 -
59,400 10,450 -
39,800 7,300 -
29,700
25% 29,700 - 71,950 59,400 -
119,950 39,800 -
102,800 29,700 -
59,975
28% 71,950 -
150,150 119,950- 182,800 102,800 -
166,450 59,975 -
91,400
33% 150,150 - 326,450 182,800 - 326,450 166,450 - 326,450 91,400 - 163,225
35% over 326,450 over 326,450 over 326,450 over 163,225
I envy everyone who lives in no state income tax states . . .now I know why SGS lives in Alaska.:blueh:
Its just not right that I'll be losing almost 45% right off the top. That will be a factor in how much cashes out right away
Sure glad I live in Washington State...LMFAO...even though it is full of bleeding heart liberal democrats and is a blue state!!Quote:
Originally Posted by ozizoz
Quote:
Originally Posted by ozizoz
Do the math. If you can buy a house in Nevada (pretty close to home for you ) for less than the tax you would pay to California,( or even close to the same $) Buy the house in Nevada and use it as your primary residence PRIOR to cashing in your Dinars. It's not illegal to position yourself in a way that would minimize your taxes.
Oz, Those dam taxes .....thats why I have all my notes in 1k and 5k dinars none higher, you got to cheat a little, it would be un American like not to.....LOL
If I had the $$$ to buy a house anywhere . . .I wouldnt be living at home with my friggin folks:waiting: . I am going to cash out the bare minimum to get done what I need . . .allow the rates to climb, find some guy named Murray who knows every tax loophole and then live in one of those nice no tax states when I hit the rest of the stash.Quote:
Originally Posted by mahi
Or maybe move to Belize
I hope the r/v is over $2 per dinar...then you will have to pay taxes on those 5k notes, LOL.Quote:
Originally Posted by archangel
Im sure the banks will be filling out all those little forms . . .maybe we can get a few notes thru the Casinos . . .but they get a little something extra outta the exchange rate.Quote:
Originally Posted by danny51
I cant believe I am complaining about being a millionaire . . .a whole new set of problems . . HAHAHAHAHA gotta be better than the ones I have now
The IRS will most likely require banks to fill out the report forms for ALL dinar exchanges, no matter how small. That way they won't miss out on their piece of the pie, LOL.Quote:
Originally Posted by ozizoz
I still holding out hope that GW might bail us out and earn a few more votes by signing some kind of Executive Order limiting taxes on Iraq Investment returns
I emailed him . . .but havent heard back . . .go figure? Maybe I should left out the part where I want to sleep with his daughters
Quote:
Originally Posted by ozizoz
I posted this a few weeks ago for I believe Neno. I just put random notes I took from forums in my note pad for further reference....Heres what I have, hope it makes sense....
The 2003 Tax Bill provision signed into law by President Bush gradually reduces the tax liabilities incurred by investors. This year its still 10% on long term capital gains. Next year its 5%, and in 2008, it will be 0%. So by default, everyone who has bought Dinar before today will fall into that category in 2008 (long term refers to holdings of over a year).
Bad news is that unless the law is renewed, the rates reset in 2009, back to 20% long term I believe. But that still gives you an entire year to reap rewards.
Many have speculated that this law was devised to coincide with a timeframe when many people will be able to cash out of a certain investment. I'll let you guess which one..........
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Originally Posted by boogirl
I was searching for tax changes from 2003 and I can only find this... I do believe this is what they were talking about. It was a part of the Tax Relief Reconciliation Act of 2003.
JS-408: Tax Provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003
Reduction in Tax Rates on Dividends and Capital Gains: The maximum tax rate on dividends paid by corporations to individuals and on individuals’ capital gains is reduced to 15% in 2003 through 2008. For taxpayers in the 10% and 15% ordinary income tax rate brackets, the rate on dividends and capital gains is reduced to 5% in 2003 through 2007, and to zero in 2008.
JS-408: Tax Provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003
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O.K. Here is what I found. Right off of the IRS website. It is a long publication, but start at page 66. It has the Capital gains tax rates and if you keep going, it shows example Schedules. This is just basic stuff. But thought I would put it here for reference. It is a pdf. file.
http://www.irs.gov/pub/irs-pdf/p550.pdf
Like I said, it is 81 pages long, but if you start a page 66, about Mid way down the page on the right. That is where it starts talking about the rates.
Read it thoroughly. First of all the President signed into law this year an extension of these long term rates through the year 2010. This was done in May of 2006.
The 5% rate is great - but you've got to be in lower bracket for it to apply. It applies to anyone in the 10% or 15% bracket with other income.
The 15% rates applies to anyone in the 25% or higher bracket.
If you are in a lower bracket with lower income, this would be a good thing. If not, then hold it a year and pay the 15% - which isn't a bad thing either when you think about it.
So maybe GW DID help us out?? Thoughts?
Cheers!
DayDream
sounds like alaska,,, cept texas is markedly SMALLER. lolQuote:
Originally Posted by ShowMeThe$$
And texas is worth a bit more money according to what we paid for alaska back in the day! :drinkbuddQuote:
Originally Posted by shotgunsusie
Yeah but we got California, Nevada, Arizona and New Mexico for $1 million from Mexico . . .Quote:
Originally Posted by PaulieThaGreat
how ya like them apples? Na Nah:yak:
Would like to get peoples thoughts on the above topic. I'm sure most of us understand it is legal to find ways to minimize your taxes, but not evade them. If we cash in smaller denoms at say a couple grand at a time, could we fly under the radar?
Hi ozizoz,Quote:
Originally Posted by ozizoz
You can be a full resident in Las Vegas in 10 days. All you have to do is rent an apartment or stay with friends forward your mail and get a Nevada Drivers license or ID card. You will save a lot. I do not believe it is illegal to do that but check first. I know corporations do it all of the time.
Dinar-Excited:leader:
We have a Capitial Gains Thread also with some good info there. Here is the Thread Link: http://www.rolclub.com/iraqi-dinar-d...ital-gain.html :ro_emote:
Me Too ,But we also have one of the highest taxes on everything else Tabaco, gas,luxury tax, liquior ,sales, property, business you name it were near the top. So they all have a way to get in your pocket. Give $9999 to 100 friends to cash in & throw a big party in the Bahamas.:party: :party:Quote:
Originally Posted by danny51
........but the Mexicans are still trying to take those states back, by repopulating.Quote:
Originally Posted by ozizoz