[POLL]How do you pay less taxes?

[rocket]

There's a thread on here somewhere about setting up anonymous PayPal accounts. If that method works, then just get creative and use it to bill yourself. Pretty simple setup actually.

Hey relicon, can u explain a bit more? I am also wanting to transfer money to a bank account/paypal other then in my own country.

So i can create expenses what will be used as tax write off and thus lowering my taxable income. But the money I will be sending I have to create something were it still remains in my possesion.
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[ghettogong]

There's a thread on here somewhere about setting up anonymous PayPal accounts. If that method works, then just get creative and use it to bill yourself. Pretty simple setup actually.

YES! Thats what im talking about. If a person can "bill" himself, he can "create" marketing expenses unlimited.

But here is the problem....

If i send less then 10k each month to my 2nd paypal, how will I be able to get that money out of that 2nd paypal account? I cannot connect a bank account to it cause it will reveal this 2nd account is mine, so what do u suggest? How are u doing ti?
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[BorisTipsIt]

Retirement accounts. You can slam pre-tax income into them. Not great, but helps and the IRS won't bat an eye at you.

 

[googlemonster]

i've got my own methods, but LLC is a great start.

for instance, did you know you can give yourself up to a $1500 gift for anything like "being with the company for a year and not getting hurt" or any award you want? And write that $1500 off! Give yourself a flatscreen plasma just for the fun of it!

Also, write off every last nickel - groceries for stocking the "company kitchen", gym member ship for the "company wellness program", dinners, auto, etc. If you are home based write off rent, home owners insurance, party expenses, etc..

DEDUCTIONS + GOOD ACCOUNTANT = MORE MONEY FOR YOU


**BE CREATIVE JUST LIKE YOU ARE WITH IM**

Anyone know how much rent I can claim back currently pay $1300 a month and use my living room as my 'office' I'm in Canada btw.

 

[Danny1111]

I use a company and everything is paid to and billed to the company -- I try to pay myself as little as possible cash wise.

For people asking about getting caught - I think what happens is you create a pattern of income and payments - so if all of a sudden this pattern changes you probably end up getting audited and the whole thing falls apart from there.

ExtraWinner companies file forms as to who they have paid money too - so you have to declare that as your income - so it matches up - otherwise you get a letter in the mail asking to explain where you declared the income on your return. I already got one for the IRS - because I changed the company name and it didn't match what the other company reported.

Bottom line is once you make money get a company - and run everything from there to maximize what you can do and what you can't.

 

[Roparadise]

One method that can reduce the amount of taxes that you pay greatly,is to create a trademark of a logo,and brand and have it owned by an overseas company located in a country like Bulgaria,Albania,Montenego. Then the U.S. company pays a monthly fee to use the trademark and a % of the profits. For legitimacy reasons I would go with Bulgaria as it is in the EU,and the other nations are not. A company only pays 10% taxes there.

For those of you that like to drive and travel,you could also create a travel research division under your U.S. llc where you travel the U.S. and visit different cities and attractions to blog or write papers on. This way you can deduct vehicle milage,cost of living,food and other items.

Those two combined could easily save you tons of money,but with the overseas company you have to keep the money overseas and cannot bring to the U.S. or it will be taxed heavily.

 

[jstover77]

I am by no means an expert when it comes to taxes, and I do have an accountant that is great, but this is what I would do to get around taxes.

Set up company A (legit company in US). Take a % of income to pay a company overseas (company B that you also set up under someone else name) for "marketing and advertising expense". Say 30-40% of total income. Then take a small paycheck from company A. This way you can have a payroll company automatically debit the taxes out. Stay in a low tax bracket. You could even pay your wife a small salary if there is more income left over. You then write off as much as you can to off set the cash left over. Then with company B you either set it up with a debit card so you can withdrawal the cash. Or you can take a "business trip" to where your cash is located and do a withdrawal from the bank (I think you have to be careful with how much you cash out at one time. I think anything over $10K you have to declare, but I am sure there are ways around this too). Take the cash and stash it.

Again not an expert, but I know there are ways to set something like this up. If anyone else has insight feel free to ad.

 

[Roparadise]

With the marketing and advertising expense I do not think you can do a %,but you can do a fee based on the amount of service. But if you pay your wife money it will also be taxed.

Your going to have to have a "franchise cost" from one company and a service that you buy from another overseas company. After those costs you will also take all the possible deductions that you can. IMO I think that travelling to get your money in cash to bring back to the U.S. is pointless,have your overseas company buy property in the United States instead. This way you are not sending money into the U.S. to yourself or to the U.S. company. And you are not wasting money traveling just to get the money into the United States.

You will also have to have a trusted person overseas that will be in the officer position of the overseas companies. As the IRS will consider it a U.S. based company if you are the manager of it.

 

[Danny1111]

yeah - then the issue is

if you are an officer of company b - and it gets checked then your on the hook for the money anyway

because like in your suggestion - having someone to trust offshore with your money - in the transfer from a to b ... is too hard - but being an officer then your up crap creek.

they always follow the money flow - so 2 companies deep is not protection enough... imo.

 

[Roparadise]

yeah - then the issue is

if you are an officer of company b - and it gets checked then your on the hook for the money anyway

because like in your suggestion - having someone to trust offshore with your money - in the transfer from a to b ... is too hard - but being an officer then your up crap creek.

they always follow the money flow - so 2 companies deep is not protection enough... imo.

I think it is just based on residency and not citizenship,so if I decided to live in Bulgaria for 10 years,then I wouldn't need to have a trusted person to run the company for those years.

When it comes to taxes the worst nation is the United States,although other nations have higher taxes,they dont make you pay on worldwide income. I wished the U.S. was like the U.K. in that it allowed a person to give up citizenship once and then reclaim it once and still be conisdered a natural born citizen.

I dont want to get into politics much,but this still relates to economics. If everyone was willing to become a citizenship of another nation and give up citizenship of their natural birth nation,Every nation would have to compete more for citizens and be much better with the tax rate and the services they offer.

But since nations are not like companies and do not study what is done better in other nations then they do,they really do not improve like how companies have to improve to keep being on top.

 

[Evan Foster]

To have a better life for me and my wife i am paying all taxes with minimal expenses because there are no expenses in my work.

 

[anonym0use]

I'd prefer to duck the IRS entirely. I'm a young guy and have never filed... they get you on the filing you see, filing incorrectly and signing your name. not filing may work if you can duck your head and take the proper precautions along the way

 

[shadowedsniper]

I'd prefer to duck the IRS entirely. I'm a young guy and have never filed... they get you on the filing you see, filing incorrectly and signing your name. not filing may work if you can duck your head and take the proper precautions along the way

You, sir, are an idiot.

If you're making more than several thousand dollars a year (and a US citizen), you are on the IRS' radar. Keep in mind that the affiliate programs you make money with are claiming YOUR income with them to the IRS. That's why they ask for your SSN when you sign up.

My advice: Don't take advice from the majority of people in this thread. There has been one or two good posts, everyone else is just spouting about something they saw in a movie.

Most of the deductions mentioned in this thread fall under the "high audit risk" category. Only claim deductions that DIRECTLY affect your business. If you work on the internet, don't try to write off gas. The IRS looks for people who claim deductions that don't fit into their line of work.

 

[davids355]

I recently started using an accountant, it's so much easier and there's loads of stuff I didn't even know I could claim for (even claim percentage of house bills as I have home-office ).

I agree with above post if your making money you need to be sensible with tax otherwise you will get caught out - if you have accountant you can pay as little as possible AND not be hiding from the IRS

 

[michigandj]

When I travel I make sure there is a business purpose attached to my trip. I can offset a significant amount of income in that way. Also I have an LLC, seems I get more tax deductions that way than with a Schedule C.

 

[xgnux]

Just earn enough so that you dont care about taxes anymore

 

[volund]

How do you not pay taxes? Well it depends on what you are doing... If you are selling stuff to receive money, then you cant really avoid it. BUT if you are doing an online service such as SEO or google adsense or lets say you are charging people online to use a service you are offering such as hosting, THEN THERE IS A WAY!

How? You go to Nevada, open a bank account, register your whole company there and your set. In Nevada, the casinos pay taxes, YOU DONT. I mean you do pay sales tax but NEVER INCOME TAX. So all the income that you are receiving from online service, YOU DONT PAY A CENT.

There is no STATE Income tax in Nevada, this does not affect what you are going to own the FEDS and the IRS. There are a number of states with no state income tax, I have lived in a couple of them but you still have to file your federal returns every year.

 

[ewandy]

Hmm well my idea is using payoneer to "launder" the money. I declare x amount so the gov. is happy and they don't look into my business and the rest of the money is brought in through payoneer. For all those who don't know that credit card doesn't have a bank account. This works on a small scale dunno how the big boys are doing it though.

 

[ghettogong]

It would be good if you could send "marketing" money to a 2nd account on paypal, moneybookers, payoneers and showing IRS that these are the "expenses" for your business. So you can deduct these "expenses" from your taxable income. And meanwhile you are the holder of that 2nd account and you use that money with a debitcard in shops withouts cameras at the checkout.

But, paypal and moneybookers requires you to connect it with a bankacc.
Payoneer i dunno know if a bankacc is needed.
And opening a 2nd bankacc. is another hole in your body to be used by the IRS

Are there guys using this kind of method???
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[Roparadise]

It would be good if you could send "marketing" money to a 2nd account on paypal, moneybookers, payoneers and showing IRS that these are the "expenses" for your business. So you can deduct these "expenses" from your taxable income. And meanwhile you are the holder of that 2nd account and you use that money with a debitcard in shops withouts cameras at the checkout.

But, paypal and moneybookers requires you to connect it with a bankacc.
Payoneer i dunno know if a bankacc is needed.
And opening a 2nd bankacc. is another hole in your body to be used by the IRS

Are there guys using this kind of method???
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Its better to create an overseas company that is providing a seo service to your u.s. company.