Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 11-04-2006, 19:52   #16
Registered User
 
CaptainK's Avatar

Join Date: Sep 2005
Location: Phoenix, Arizona... USA
Posts: 2,386
Images: 7
N.M.I.ke,

If you're not sure. If I were you. I would investigate that issue about the "not paying federal income taxes".

The IRS would love to hammer you if you were wrong!!
__________________

__________________
CaptainK
BMYC

"Those who desire to give up Freedom in order to gain security, will not have, nor do they deserve, either one." - Benjamin Franklin
CaptainK is offline   Reply With Quote
Old 11-04-2006, 20:09   #17
Registered User

Join Date: Apr 2006
Location: Saipan, CNMI
Posts: 88
I'm sure about the CNMI: (no federal income tax)

I'm not sure about Guam.
__________________

__________________
N.M.I.ke is offline   Reply With Quote
Old 11-04-2006, 20:23   #18
Registered User
 
CaptainK's Avatar

Join Date: Sep 2005
Location: Phoenix, Arizona... USA
Posts: 2,386
Images: 7
Well, that's great!!

That means more money that you could put towards purchasing a sailboat with?
__________________
CaptainK
BMYC

"Those who desire to give up Freedom in order to gain security, will not have, nor do they deserve, either one." - Benjamin Franklin
CaptainK is offline   Reply With Quote
Old 11-04-2006, 20:49   #19
Registered User

Join Date: Apr 2006
Location: Saipan, CNMI
Posts: 88
Hopefully! If it weren't for law school loans and that darn baby formula, I'd be rolling in dough.

I'm on the 10-14 year plan to buy the expensive "more boat than I certainly need and can handle but must have if the wife is going to come along" cruising cat.

I can pick up a smallish used boat in the next year or two to practice (you know, figure out how to sail.
__________________
N.M.I.ke is offline   Reply With Quote
Old 11-04-2006, 20:51   #20
Registered User
 
Wukong's Avatar

Join Date: Aug 2005
Location: Panama City, FL
Posts: 79
My daughter works in the Virgin Islands which is also a US Territory. I believe she said that she does not pay federal taxes but taxes to the Territorial government. These third world countries known as territories have learned to spend money like Mobutu of Zaire.

I would bet any one in the Pacific could sail into Saipan for a period of time. Extablish a mailing address at the local US Post Office. Open a small bank account with the statements going to that address so you get at least one statement for the record. Go to where ever necessary to get a driver's license and register to vote and get a voter registration card. and Bingo you now become a US citizen of the CMNI.

Your US Passport is still valid. If you have no reportable income I would bet that you could qualify for welfare which would probably be provided by those who would consider it to be too much of a hassle.

There is no bum like a complete bum. Sail around and live the life of a US "third world" citizen.
__________________
When you strike first, you don't have to get even.
Wukong is offline   Reply With Quote
Old 11-04-2006, 21:08   #21
Registered User
 
CaptainK's Avatar

Join Date: Sep 2005
Location: Phoenix, Arizona... USA
Posts: 2,386
Images: 7
N.M.I.ke,

Getting a small boat is a very wise decision. Get something in the 20+ foot range, for starters.

I own a 1973 Catalina 27. Spent only $3,500 for it!!
__________________
CaptainK
BMYC

"Those who desire to give up Freedom in order to gain security, will not have, nor do they deserve, either one." - Benjamin Franklin
CaptainK is offline   Reply With Quote
Old 11-04-2006, 21:28   #22
Registered User

Join Date: Apr 2006
Location: Saipan, CNMI
Posts: 88
There aren't a lot of marinas over here so a nice used boat would be very costly, I assume. Will probably have to buy one in the states and have it shipped over, which sounds silly when you consider it would be a boat on a boat (or ship, whatever).

To get a CNMI driver's license, you must show up and show them your stateside license, and tell them in which village you live. You needn't give a street address because there aren't any street numbers, per se. We just got streetsigns in the last two years or so. Bonus is you get to keep your stateside license, too, so you don't get hassled when you're back on the mainland.

PO Box quite easily obtained. To be considered a resident here, you need to be here 1 day a year. No more, no less. Any income earned here stays here, is taxable here (about 9%, I think, but I'm not an accountant or tax lawyer, so I'm not really sure what the actual rate is). All in all, a nice deal.
__________________
N.M.I.ke is offline   Reply With Quote
Old 12-04-2006, 19:15   #23
Registered User
 
Wukong's Avatar

Join Date: Aug 2005
Location: Panama City, FL
Posts: 79
A Source of INcome

N.M.I.ke,

Maybe you as a lawyer could set up a clearing house to help deserving cruisers obtain and maintain citizenship in CNMI. A couple of hundered dollars of billable time is much better than a couple of thousand dollars of taxes.
__________________
When you strike first, you don't have to get even.
Wukong is offline   Reply With Quote
Old 11-06-2006, 23:52   #24
Registered User

Join Date: Apr 2006
Location: Saipan, CNMI
Posts: 88
Quote:
Originally Posted by Wukong
N.M.I.ke,

Maybe you as a lawyer could set up a clearing house to help deserving cruisers obtain and maintain citizenship in CNMI. A couple of hundered dollars of billable time is much better than a couple of thousand dollars of taxes.
I am a lawyer but not a tax lawyer, so I really don't know enough about this stuff to give anyone reliable advise. (That's why God created accountants and tax lawyers).

I know that what the CNMI considers a resident and what Uncle Sam considers a resident may be different. You may have to be here for 180 days (or longer) to get the preferential tax treatment as far as the Feds are concerned. And of course, I would err on the side of doing what the Feds want, because they have the aircraft carriers to back up their side of the argument!

I would advise anyone to speak to a REAL tax lawyer (not one of those "avoid paying all tax" charlatans) to see if you could realize significant savings. Perhaps it would be worth your while.

But I'm sure this is one area where individual circumstances will vary wildly. So talk to your attorney and see about setting up residence in the islands or incorporating there.
__________________
N.M.I.ke is offline   Reply With Quote
Old 12-06-2006, 08:38   #25
Registered User

Join Date: Apr 2006
Location: presently gallivanting back across the Pacific... Pago Pago at the moment
Boat: Hylas 49 - GALLIVANTER
Posts: 201
I lived in the Territory of Guam for several years. 1995 & 1997 - 2000.

I paid Federal Income Taxes, filed locally, and received a tax refund based on the number of exemptions claimed... exactly as if I were living in the States.

There was NO rebate or refund of any kind for military base rentals to residents of Guam.

The best benefit, relating to this forum, is that boat registrations on Guam are only renewed every three years at a cost of $45 ($15 per year).

I lived in the Commonwealth of the Northern Marianas (within sight of Guam) from 1988 - 1990. The CNMI has generous tax programs to promote investment... but I still paid a flat rate 6% income tax.

I ran a small submarine operation there and paid $10 per year for a new registration sticker.

Now I'm loving life in the Territory of the U.S. Virgin Islands, we pay Federal Income Taxes - filed locally, too. I'm still waiting for my refund from 2002 and I doubt I'll ever see it!

Boat registrations in this territory cost $150 per year. But I feel it's good value as I believe the Virgin Islands are among the finest cruising grounds on the planet.

As far as supporting yourself while out cruising - I've been enjoying Life in Paradise by utilizing American & Australian Captain's Licenses, my sewing machine and aviation & hard hat diving credentials I earned in the Navy 30 years ago. My wife pitches in sometimes as a scuba instructor, harbor bartender and marina office manager. Our quest has always been to collect skills & credentials which can be cashed-in around the waterfront, wherever we drop anchor. At the moment, in my spare time, I'm gaining experience operating a travel lift and a crane here in the boatyard.

For me - commercial diving pays the best, driving tour boats is the easist work to find and I can always fall back on canvaswork & sail repairs in order to keep the cruising kitty purring.

Knowledge and experience will never weigh you down.

But you always have to pay the piper in one form or another.

Death & Taxes.

Cheers!

Kirk
__________________
Gallivanters is offline   Reply With Quote
Old 12-06-2006, 08:53   #26
Registered User

Join Date: Apr 2006
Location: presently gallivanting back across the Pacific... Pago Pago at the moment
Boat: Hylas 49 - GALLIVANTER
Posts: 201
I lived in the Territory of Guam for several years. 1995 & 1997 - 2000.

I paid Federal Income Taxes, filed locally, and received a tax refund based on the number of exemptions claimed... exactly as if I were living in the States.

There was NO rebate or refund of any kind for military base rentals to residents of Guam.

The best benefit, relating to this forum, is that boat registrations on Guam are only renewed every three years at a cost of $45 ($15 per year).

I lived in the Commonwealth of the Northern Marianas (within sight of Guam) from 1988 - 1990. The CNMI has generous tax programs to promote investment... but I still paid a flat rate 6% income tax.

I ran a small submarine operation there and paid $10 per year for a new registration sticker.

Now I'm loving life in the Territory of the U.S. Virgin Islands, we pay Federal Income Taxes - filed locally, too. I'm still waiting for my refund from 2002 and I doubt I'll ever see it!

Boat registrations in this territory cost $150 per year. But I feel it's good value as I believe the Virgin Islands are among the finest cruising grounds on the planet.

As far as supporting yourself while out cruising - I've been enjoying Life in Paradise by utilizing American & Australian Captain's Licenses, my sewing machine and aviation & hard hat diving credentials I earned in the Navy 30 years ago. My wife pitches in sometimes as a scuba instructor, harbor bartender and marina office manager. Our quest has always been to collect skills & credentials which can be cashed-in around the waterfront, wherever we drop anchor. At the moment, in my spare time, I'm gaining experience operating a travel lift and a crane here in the boatyard.

For me - commercial diving pays the best, driving tour boats is the easist work to find and I can always fall back on canvaswork & sail repairs in order to keep the cruising kitty purring.

Knowledge and experience will never weigh you down.

But you always have to pay the piper in one form or another.

Death & Taxes.

Cheers!

Kirk
__________________

__________________
Gallivanters is offline   Reply With Quote
Reply

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




Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 00:33.


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.