Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 22-08-2011, 06:25   #31
Senior Cruiser
 
osirissail's Avatar

Cruisers Forum Supporter

Join Date: Feb 2009
Location: A real life Zombie from FL
Boat: Gulfstar 53 - Osiris
Posts: 5,416
Images: 2
Re: IRS Out to Get US Citizens Living Offshore

Yes getting back to the tax thing . . . The OP, I believe was posting about the requirements to keep the USA IRS informed and aware of your income streams both inside the USA and outside the USA.
- - This brings up the relationship of taxes to cruising and cruising boats (kind of what CF is supposed to be about). I have had some very convoluted and complicated tax situations over my working years and have spent more than my share of time hassling it out with the IRS about how much I legally owe them.
- - When you are young and financially productive paying your "fair share" but not any extra is a constant concern. I suspect we all have worked hard for our money and would like to be able to keep the maximum possible so we can buy the cruising boat and retire to a life of adventure.
- - But once you do head out in your cruising boat snail mail has a difficult time finding you and it can takes months to catch up with. Since IRS and other official government inquiries usually require a response within 90 days you can get into complications over simple things very easily.
- - So simplifying your revenue stream and tax obligations becomes a high priority. Who wants to spend a lot of your time in paradise hassling over tax matters back home? So moving things into tax sheltered or non-taxable or other simplifications tax-wise is very wise. If you can get things organized such that you can use the Form 1040EZ that would be a worthy goal. But if not, then at least get the 1040 down to a couple of pages with the minimum of attached schedules.
- - I suspect the main thrust of the ex-pat frustration with dual or other citizenship and taxes is the need to keep up or well versed in the complications and convulsions of taxing regs in more than one country. But there are ways to organize your obligations to reduce the "paperwork" and hassles. Some of them may not be as efficient as others to keep your tax obligations to the legal minimum, but the reductions in tracking, filing and worrying about IRS inquiries is well worth a few more sheckles.
__________________

__________________
osirissail is offline   Reply With Quote
Old 22-08-2011, 13:25   #32
Nearly an old salt
 
goboatingnow's Avatar

Cruisers Forum Supporter

Join Date: Jun 2009
Posts: 13,649
Images: 3
Quote:

As a sailor, however, I've made very sure my boat is Canadian-flagged, registered and owned, because if it were otherwise, the European regulations, taxes and insurance are far more expensive than in North America.
Other then VAT I don't agree taxes are very high in the US.

The other thing is that once you establish domicile in a foreign surely you no longer pay uncle Sam any taxes on income from that domiciled country, because You have to pay thoses Taxes locally.

Dave
__________________

__________________
Check out my new blog on smart boat technology, networking and gadgets for the connected sailor! - http://smartboats.tumblr.com
goboatingnow is offline   Reply With Quote
Old 22-08-2011, 13:31   #33
Registered User
 
avb3's Avatar

Cruisers Forum Supporter

Join Date: Jul 2010
Location: Florida/Alberta
Boat: Lippincott 30
Posts: 9,913
Images: 1
Re: IRS Out to Get US Citizens Living Offshore

Quote:
Originally Posted by SaucySailoress View Post
Erm.... about the tax thing....?
What SWMO as moderator just said.

I really feel this is important info that needs to be acted on now.

After Aug 31/11, sidetrack all you want and if the thread then gets closed, it won't affect anyone else who may have benefited from knowing about the deadline.
__________________
If your attitude resembles the south end of a bull heading north, it's time to turn around.
avb3 is offline   Reply With Quote
Old 22-08-2011, 13:36   #34
Registered User
 
avb3's Avatar

Cruisers Forum Supporter

Join Date: Jul 2010
Location: Florida/Alberta
Boat: Lippincott 30
Posts: 9,913
Images: 1
Re: IRS Out to Get US Citizens Living Offshore

Quote:
Originally Posted by goboatingnow View Post
Other then VAT I don't agree taxes are very high in the US.

The other thing is that once you establish domicile in a foreign surely you no longer pay uncle Sam any taxes on income from that domiciled country, because You have to pay thoses Taxes locally.

Dave
Yes, logic says that. Laws are not always logical

If you are a US citizen, you are taxed on your world income, no matter where you live. Yes, you get credit for what you paid in another country, but it gets complicated really quickly depending on tax treaties, that country's laws, and where you earn your money from.

As example, if you live in Panama, and make all your money from source outside of Panama, you pay no Panamanian taxes.

Now, if you happen to be a US citizen, what do you thinki the IRS will want?
__________________
If your attitude resembles the south end of a bull heading north, it's time to turn around.
avb3 is offline   Reply With Quote
Old 22-08-2011, 17:28   #35
Senior Cruiser
 
osirissail's Avatar

Cruisers Forum Supporter

Join Date: Feb 2009
Location: A real life Zombie from FL
Boat: Gulfstar 53 - Osiris
Posts: 5,416
Images: 2
Re: IRS Out to Get US Citizens Living Offshore

If you think the USA IRS tax system is less than logical try fathoming the California State Tax system that wants to tax you even if you leave the State permanently and live elsewhere . . .
__________________
osirissail is offline   Reply With Quote
Old 22-08-2011, 17:38   #36
Registered User
 
avb3's Avatar

Cruisers Forum Supporter

Join Date: Jul 2010
Location: Florida/Alberta
Boat: Lippincott 30
Posts: 9,913
Images: 1
Re: IRS Out to Get US Citizens Living Offshore

Quote:
Originally Posted by osirissail View Post
If you think the USA IRS tax system is less than logical try fathoming the California State Tax system that wants to tax you even if you leave the State permanently and live elsewhere . . .
They don't have any agreements with the IRS to enforce that one do they?

That is just crazy. Remind me not to buy in California ever. (I was focused on FL anyways).

Only thing is, when I sell real estate in the States (as a Canadian), IRS has a 30% withholding tax. I may just put the property in my kids name right away, that way at least one generation benefits from it a tax free holiday.
__________________
If your attitude resembles the south end of a bull heading north, it's time to turn around.
avb3 is offline   Reply With Quote
Old 22-08-2011, 17:50   #37
Senior Cruiser
 
osirissail's Avatar

Cruisers Forum Supporter

Join Date: Feb 2009
Location: A real life Zombie from FL
Boat: Gulfstar 53 - Osiris
Posts: 5,416
Images: 2
Re: IRS Out to Get US Citizens Living Offshore

Quote:
Originally Posted by avb3 View Post
They don't have any agreements with the IRS to enforce that one do they?

That is just crazy. Remind me not to buy in California ever. (I was focused on FL anyways).

Only thing is, when I sell real estate in the States (as a Canadian), IRS has a 30% withholding tax. I may just put the property in my kids name right away, that way at least one generation benefits from it a tax free holiday.
No, the Fed's don't get involved with State Taxing authorities except to share information when requested.
- - Buying or visiting California is not the problem, having worked there or owning property there is the "hook" they use to make a claim against your wallet.
- - As with everything in the USA tax systems, there are reams of pages of loopholes and exceptions that can be exploited to minimize or eliminate a lot of taxation. Finding and using these is quite legal - tax avoidance - whereas not paying or fighting taxes is not - tax evasion. That is why good tax advisors/CPA's are worth it. You won't see Warren Buffet doing his own tax forms.
__________________
osirissail is offline   Reply With Quote
Old 22-08-2011, 18:09   #38
Moderator Emeritus
 
David M's Avatar

Cruisers Forum Supporter

Join Date: Sep 2007
Location: San Francisco Bay
Boat: research vessel
Posts: 10,150
Re: IRS Out to Get US Citizens Living Offshore

Quote:
Originally Posted by tropicalescape View Post
Dont see how anyone could put a price on not being American!......Not even a consideration.No amount of money for the love of my country..and im native american and at the very bottom of the pecking order of socio-status ie,highest un-employment,highest alcoholisum rate,most uneducated,most of all the negative things you can think of per-capita and we (native americans)have it...but its better to be the lowest american than the highest of anyone else...of course my thoughts might have something to do with the highest per-capita of the un-educated...DVC
There are lots of people who move to another country. This does not mean they do like where they came from. They just prefer to live somewhere else now. It does not seem right to have to pay taxes to a country one no longer permanently resides in. I do love the US by the way.
__________________
David

Life begins where land ends.
David M is offline   Reply With Quote
Old 23-08-2011, 03:00   #39
Armchair Bucketeer
 
David_Old_Jersey's Avatar

Join Date: Oct 2006
Posts: 10,013
Images: 4
Re: IRS Out to Get US Citizens Living Offshore

Also remember that internationally the tax rules do not always automatically fit together between countries - perfectly possible to owe more than 100% spread between several countries (in certain circumstances Offshore places like Jersey can act as a neutral gasket to marry together differring systems that don't quite fit together - for the benefit of all).....................but if you are down that route odds are will long ago have had a tax lawyer and tax accountant.....if not several.

Of course in the good old days the approach over here was a bit more basic...............alledgedly
__________________

__________________
David_Old_Jersey is offline   Reply With Quote
Reply

Tags
offshore

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Offshore Banking sabray The Sailor's Confessional 23 22-12-2011 08:35
Working While Living Aboard Stede Liveaboard's Forum 45 20-08-2011 18:51
Offshore Navigator Question Maine Sail Navigation 5 16-08-2011 18:24
Cost of Living Aboard JanetGroene Liveaboard's Forum 1 07-08-2011 16:29



Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 00:24.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.