WSOP Windfall... What am I to do?

[jason6633]

[ QUOTE ]
I don't think you actually know anything about US Tax laws and how living outside of the USA affects anyone's tax liability. I haven't read the rest of this thread yet but I sure hope someone set this straight.

[/ QUOTE ]

I must admit I am not a US citizen but a Canadian one and so my opinons are colored by our laws, however tax structuring through IBC's is an entire industry originally designed for US citizens and US expatriates. There are some good resources, such as escapeartist.com that can give much more clarity then I can. However since he is not interested anyway its a non-issue.

[TheMetetron]

[ QUOTE ]
[ QUOTE ]
I don't think you actually know anything about US Tax laws and how living outside of the USA affects anyone's tax liability. I haven't read the rest of this thread yet but I sure hope someone set this straight.

[/ QUOTE ]

I must admit I am not a US citizen but a Canadian one and so my opinons are colored by our laws, however tax structuring through IBC's is an entire industry originally designed for US citizens and US expatriates. There are some good resources, such as escapeartist.com that can give much more clarity then I can. However since he is not interested anyway its a non-issue.

[/ QUOTE ]

I'll set you straight. Everything you stated is 100% wrong for the USA. Don't give this advice to anyone in the future.

[jaydub]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
I don't think you actually know anything about US Tax laws and how living outside of the USA affects anyone's tax liability. I haven't read the rest of this thread yet but I sure hope someone set this straight.

[/ QUOTE ]

I must admit I am not a US citizen but a Canadian one and so my opinons are colored by our laws, however tax structuring through IBC's is an entire industry originally designed for US citizens and US expatriates. There are some good resources, such as escapeartist.com that can give much more clarity then I can. However since he is not interested anyway its a non-issue.

[/ QUOTE ]

I'll set you straight. Everything you stated is 100% wrong for the USA. Don't give this advice to anyone in the future.

[/ QUOTE ]

Haven't considered it myself but isn't there this tiny, little detail omitted of having to permanently give up one's citizenship?

J

[jason6633]

Despite being 100% wrong the appropriate IRS form is 2555. Form 8854 is used to file in case of renouncing us citizenship/full expatriation but is less attractive. Publication 54 is an informative related guide from the IRS perspective. If forming an IBC, use a reputable law firm (I used Pardini of Panama).

Not trying to be arguementative, just being more concise which I should have done in my original post. My apologies for being careless, I should not have applied a non US perspective to a US situation without first verifying differences.

Good Luck Jurollo, sorry for polluting your thread.

[gull]

Congratulations.

As others have noted, the best thing to do would be to put as much money as possible into an IRA and then invest the money in your IRA and taxable accounts into index funds. Index funds are more sensible than individual stocks. They have the same expected return, but much lower variance. It's like multitabling in a way. If you want specific asset allocation recommendations, please ask. A very simple allocation plan would be to just stick it all in a balanced fund, such as Vanguard's Target Retirement 2050 fund.

[Jeff W]

[ QUOTE ]
A very simple allocation plan would be to just stick it all in a balanced fund, such as Vanguard's Target Retirement 2050 fund.

[/ QUOTE ]

I would recommend against a target retirement fund since you don't want to hold bonds in taxable unless they're tax-exempt.

[clownassassin]

If you see yourself earning over 100k per year and the majority of your earnings do not come from being a W-2 employee you should strongly consider incorporating yourself. The tax savings are substantial.

[kahntrutahn]

By far my most profitable move ever was reinvesting my poker profits into my bankroll.

That said, I have a company and a SEP-IRA maxed out yearly. The company pays me enough in W2 income as the CEO to max the SEP, the leftover money is treated as a bonus (small tax benefit).