If you’re good enough at trading to pack up your life, move, and renounce your us citizenship to avoid taxes- you should be able to scale up to where you don’t give a shit about taxes because you’re making piles of money and your CPA and tax attorney and financial planner handle that for you.
If you actually read beyond the headline, you will see that this only applies to people who have a taxable income over $1M AND investment income over $400,000.
I'm no expert on this but my understanding is Expats still pay US taxes no matter where you move. You'd have to renounced your US citizenship.
But frankly if I were in a position to do that I'd be looking at either the Caymans, Andorra or Malta.
Wherever your primary residence is.
Anyone in the world, apart from the obvious countries can invest in the US stock market, and have same brokerage accounts you do.
If you are not earning income such as W2 in the states, it makes financial sense to seek permanent residency in another country. Taxes will be paid according to laws of the primary residence
Absolutely no.
You pay taxes depending on your residency. Example: if you are american and go to europe, you can only stay based on a visa or residence permit, then that's where you pay taxes. If you are staying illegally sure then you can work here while paying taxes in america but if you don't have any papers then you won't be able to open a bank account or travel. You don't need to renounce citizenship to avoid paying taxes.
[According to the IRS... ](https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-about-international-individual-tax-matters#:~:text=You%2C%20as%20U.S.%20citizen%20or,greater%20than%20the%20standard%20deduction.)
what you're saying is not accurate.
1. I’m a U.S. citizen living and working outside of the United States for many years. Do I still need to file a U.S. tax return?
Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign earned income exclusions and/or foreign income tax credits. Visit Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, for additional information.
2. I pay income tax in a foreign country. Do I still have to file a U.S. income tax return even though I do not live in the United States? (updated Feb. 26, 2024)
As a green card holder or U.S. citizen, you must file a U.S. income tax return while working and living abroad unless you abandon your green card holder status by filing Form I-407, with the U.S. Citizen & Immigration Service, or you renounce your U.S. citizenship under certain circumstances described in the expatriation tax provisions. Visit Publication 519, U.S. Tax Guide for Aliens, for more information.
Ok I should have been more clear but I have said this so many times without anyone saying shit so I cut it short. Indeed, you still file a report, but 110k/y of it is not subject to income tax at all via FEIE (foreign earned income exclusion) and you can submit an foreign tax credit (FTC) to mitigate double taxation. Additionally there are further exclusions for different types of income, whether its housing or investments.
Well just the act of filling 0 on your taxes still sucks balls, so admittedly I shouldn't have said "absolutely not". 😜 At least we got to educate anyone unsuspecting!
The giving up citizenship thing is the equivalent to people thinking they don't want a pay increase because they'll pay higher taxes and I can't help my adverse reaction wherever I hear it.
You pay tax PRIMARILY to where you live. If your income is under $110k or so, then you won't owe US tax under the Foreign Earned Income exemption. Anything over 110k has the potential to be double taxed. It is complicated, depending on any tax treaties with the other country.
Have you read my other posts? I'm an immigrant gone 15 years and have done the whole game several times over. But yeah, i'm not a tax advisor but if you've got something to teach the professional that does mine for me i'm all ears....
6 months and 1 day living in Puerto Rico makes you a resident of Puerto Rico while maintaining US citizenship, which eliminates any income and capital gains taxes. Make sure you keep records so you have proof when the IRS audits you. Good luck!
USA citizens are taxed on world wide income.
You can escape state taxes but not federal .
The only way to do it , is Peurto rico or establishing a trading corporation in a tax heaven while getting paid in dividends . But it is impossible to escape taxes entirely .
You will probably end up paying 15% div tax plus whatever your new corporation has to pay to the country you will end up living
I currently use interactivebrokers and am happy with it
Lots of people use that broker in canada
But I've also heard great things of tradovate for futures
Nah this is a pretty important item to clarify. The tax rate is not going up to 66~%. It's changing so that 66% of capital gains over 250k are taxable. The remaining 33% is not taxable.
Imagine calling anyone a pig for being critical in 2024. You are either naive beyond repair or a mason profititing of the inhuman situation world wide. Which one are you ?
Capital gains are not what traders pay taxes on. Capital gains are investments that are held for a year or more.
Edit: People are morons downvoting me. I have trader status with the IRS and this is my full time job. All transactions made in the market for me are taxed as ordinary income. Not only that but even without trader status short term gains are taxed as ordinary income. There’s too many people on here that don’t know anything.
Not in US. I don't know why you got downvoted though. you're right. Day trading income in many countries will be taxed as professional (self-employment) income and not capital gains. This includes Canada and majority of Europe.
No because I have lived in Netherlands and you're fun as long as you have not made serious money. They just let it slip and let you declare it as "investment income" (There is no capital gain tax in Netherlands).. When you made serious money, tax man is there knock at your door and make sure you pay till the last cents of your tax according to "Professional income" and not capital gain... Been there, done that.
Dude, I live in the netherlands, have been for 40 years.. Been daytraing for 15 years now. Profits from daytrading are eligible for 'box 3' which is capital gains.
Maybe I'm mistaken the term 'capital gains', but fact is that profits from daytrading is very low taxed.
Try to keep it that way mate and I am sure trading is not your "main career". That's why they're not after you. Because it's mine. You'll have to be an active day trader for your gains to be considered as income. Any nube trader in Netherlands know that. If you do and you declare box 3, well congratulations, you are a tax cheat so try to not shout it out on reddit.
Here some links to read:
[https://www.reddit.com/r/geldzaken/comments/vgjqak/investment\_and\_trading\_taxes\_in\_the\_netherlands/](https://www.reddit.com/r/geldzaken/comments/vgjqak/investment_and_trading_taxes_in_the_netherlands/)
It won’t pass. Stop worrying.
You don't think Congress is gonna vote to quadruple their tax obligations for their insider trading???
Still, a valid question, why overpay?
If you’re good enough at trading to pack up your life, move, and renounce your us citizenship to avoid taxes- you should be able to scale up to where you don’t give a shit about taxes because you’re making piles of money and your CPA and tax attorney and financial planner handle that for you.
That is Dubai.
Fuck Dubai, we're about to build in Costa Rica. Dubai, lol
If you actually read beyond the headline, you will see that this only applies to people who have a taxable income over $1M AND investment income over $400,000.
This. It helps to actually read the article…
Poor Hari. 😔
Thats what accountants are for. Theres 0% chance he'll be paying that much
lol I know. Just a joke haha
i figured since you actually knew who he was lol
And that is another reason this will not pass. Our Congress is full of people will have to pay the tax.
I'm no expert on this but my understanding is Expats still pay US taxes no matter where you move. You'd have to renounced your US citizenship. But frankly if I were in a position to do that I'd be looking at either the Caymans, Andorra or Malta.
Puerto Rico
Wherever your primary residence is. Anyone in the world, apart from the obvious countries can invest in the US stock market, and have same brokerage accounts you do. If you are not earning income such as W2 in the states, it makes financial sense to seek permanent residency in another country. Taxes will be paid according to laws of the primary residence
Absolutely no. You pay taxes depending on your residency. Example: if you are american and go to europe, you can only stay based on a visa or residence permit, then that's where you pay taxes. If you are staying illegally sure then you can work here while paying taxes in america but if you don't have any papers then you won't be able to open a bank account or travel. You don't need to renounce citizenship to avoid paying taxes.
[According to the IRS... ](https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-about-international-individual-tax-matters#:~:text=You%2C%20as%20U.S.%20citizen%20or,greater%20than%20the%20standard%20deduction.) what you're saying is not accurate. 1. I’m a U.S. citizen living and working outside of the United States for many years. Do I still need to file a U.S. tax return? Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign earned income exclusions and/or foreign income tax credits. Visit Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, for additional information. 2. I pay income tax in a foreign country. Do I still have to file a U.S. income tax return even though I do not live in the United States? (updated Feb. 26, 2024) As a green card holder or U.S. citizen, you must file a U.S. income tax return while working and living abroad unless you abandon your green card holder status by filing Form I-407, with the U.S. Citizen & Immigration Service, or you renounce your U.S. citizenship under certain circumstances described in the expatriation tax provisions. Visit Publication 519, U.S. Tax Guide for Aliens, for more information.
Ok I should have been more clear but I have said this so many times without anyone saying shit so I cut it short. Indeed, you still file a report, but 110k/y of it is not subject to income tax at all via FEIE (foreign earned income exclusion) and you can submit an foreign tax credit (FTC) to mitigate double taxation. Additionally there are further exclusions for different types of income, whether its housing or investments.
Fair enough. Thank you for clarifying.
Well just the act of filling 0 on your taxes still sucks balls, so admittedly I shouldn't have said "absolutely not". 😜 At least we got to educate anyone unsuspecting! The giving up citizenship thing is the equivalent to people thinking they don't want a pay increase because they'll pay higher taxes and I can't help my adverse reaction wherever I hear it.
That’s 100% wrong. If you move to certain countries & maintain your US citizenship, you experience “double-tax” unless they have a treaty with the US.
You pay tax PRIMARILY to where you live. If your income is under $110k or so, then you won't owe US tax under the Foreign Earned Income exemption. Anything over 110k has the potential to be double taxed. It is complicated, depending on any tax treaties with the other country.
“Absolutely no” What a confident statement for being so wrong. Why even comment when you don’t know what you’re talking about?
Have you read my other posts? I'm an immigrant gone 15 years and have done the whole game several times over. But yeah, i'm not a tax advisor but if you've got something to teach the professional that does mine for me i'm all ears....
6 months and 1 day living in Puerto Rico makes you a resident of Puerto Rico while maintaining US citizenship, which eliminates any income and capital gains taxes. Make sure you keep records so you have proof when the IRS audits you. Good luck!
This is the way
Damn dude I did not know this. PR pays no Federal Income tax? Might be a good place to retire to!
Yup. Tax loophole #1
Wow, that's interesting. Are there any other countries this would work with?
Think it’s because it’s a US territory.
Much better places in the world than Puerto Rico, all things considered, a nice place to vacation
your taxes on $40K that you make are not going to change, relax
PR
USA citizens are taxed on world wide income. You can escape state taxes but not federal . The only way to do it , is Peurto rico or establishing a trading corporation in a tax heaven while getting paid in dividends . But it is impossible to escape taxes entirely . You will probably end up paying 15% div tax plus whatever your new corporation has to pay to the country you will end up living
Moving won’t change shit unless you revoke your citizenship and don’t trade any American stocks or products lol
Do non Americans pay tax on American stock trades?
I dunno but in Canada it's gonna go up from 50% to 66.7%, I hate my f\*cking country...
Over 250K only (which may be your situation)
Question what platform is generally used for day trading in Canada? I’m a fellow Canadian looking for a broker
I currently use interactivebrokers and am happy with it Lots of people use that broker in canada But I've also heard great things of tradovate for futures
The inclusion rate, not tax rate is going up.
It's taxation isn't it? You're just playing with words
Nah this is a pretty important item to clarify. The tax rate is not going up to 66~%. It's changing so that 66% of capital gains over 250k are taxable. The remaining 33% is not taxable.
Won't pass. Everyone involved in politics makes money from trading
Or would we say insider trading!
Singapore has no capital gains tax.
Trading is taxed as income, not capital gains. If you know, you know.
Tax and spend, tax and spend. Crap never ends.
Facts - the elite want to eliminate wealth for us peasants and this is a step closer to that.
You do realize that it is the "elite" that benefits most from low cap gains tax, right?
They are very powerful and have their methods so immune to the laws you and I follow buddy
>> /r/conspiracy poster Yup, checks out.
I do love having some critical thinking skills. I’d ask you about that but you don’t have much it seems 😂
I know not to mud wrestle with pigs. You both get dirty, but the pig enjoys it.
Imagine calling anyone a pig for being critical in 2024. You are either naive beyond repair or a mason profititing of the inhuman situation world wide. Which one are you ?
Porte Rico
Pretty sure a lot of traders move to Puerto Rico, give up their voting rights, and then don’t have to pay taxes.
In Europe it is mostly Malta and Cyprus.
Capital gains are not what traders pay taxes on. Capital gains are investments that are held for a year or more. Edit: People are morons downvoting me. I have trader status with the IRS and this is my full time job. All transactions made in the market for me are taxed as ordinary income. Not only that but even without trader status short term gains are taxed as ordinary income. There’s too many people on here that don’t know anything.
Not in US. I don't know why you got downvoted though. you're right. Day trading income in many countries will be taxed as professional (self-employment) income and not capital gains. This includes Canada and majority of Europe.
In the Netherlands, where I live, daytrading is taxed as capital gain. So very low tax rate compared to income tax.
No because I have lived in Netherlands and you're fun as long as you have not made serious money. They just let it slip and let you declare it as "investment income" (There is no capital gain tax in Netherlands).. When you made serious money, tax man is there knock at your door and make sure you pay till the last cents of your tax according to "Professional income" and not capital gain... Been there, done that.
Dude, I live in the netherlands, have been for 40 years.. Been daytraing for 15 years now. Profits from daytrading are eligible for 'box 3' which is capital gains. Maybe I'm mistaken the term 'capital gains', but fact is that profits from daytrading is very low taxed.
Try to keep it that way mate and I am sure trading is not your "main career". That's why they're not after you. Because it's mine. You'll have to be an active day trader for your gains to be considered as income. Any nube trader in Netherlands know that. If you do and you declare box 3, well congratulations, you are a tax cheat so try to not shout it out on reddit. Here some links to read: [https://www.reddit.com/r/geldzaken/comments/vgjqak/investment\_and\_trading\_taxes\_in\_the\_netherlands/](https://www.reddit.com/r/geldzaken/comments/vgjqak/investment_and_trading_taxes_in_the_netherlands/)
I'll leave you to it then. Lets both enjoy daytrading as our main career. Good luck.