Two Plus Two Newer Archives  

Go Back   Two Plus Two Newer Archives > Other Topics > Business, Finance, and Investing

Reply
 
Thread Tools Display Modes
  #21  
Old 06-22-2007, 02:40 AM
jason6633 jason6633 is offline
Junior Member
 
Join Date: Jun 2007
Posts: 29
Default Re: WSOP Windfall... What am I to do?

[ 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.
Reply With Quote
  #22  
Old 06-22-2007, 03:36 AM
TheMetetron TheMetetron is offline
Senior Member
 
Join Date: Oct 2004
Location: Blog Updated Dec 1st
Posts: 6,839
Default Re: WSOP Windfall... What am I to do?

[ 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.
Reply With Quote
  #23  
Old 06-22-2007, 09:14 AM
jaydub jaydub is offline
Senior Member
 
Join Date: Dec 2004
Posts: 2,055
Default Re: WSOP Windfall... What am I to do?

[ 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
Reply With Quote
  #24  
Old 06-22-2007, 03:14 PM
jason6633 jason6633 is offline
Junior Member
 
Join Date: Jun 2007
Posts: 29
Default Re: WSOP Windfall... What am I to do?

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.
Reply With Quote
  #25  
Old 06-23-2007, 09:04 PM
gull gull is offline
Senior Member
 
Join Date: Sep 2006
Posts: 981
Default Re: WSOP Windfall... What am I to do?

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.
Reply With Quote
  #26  
Old 06-23-2007, 11:23 PM
Jeff W Jeff W is offline
Senior Member
 
Join Date: May 2004
Posts: 7,079
Default Re: WSOP Windfall... What am I to do?

[ 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.
Reply With Quote
  #27  
Old 06-24-2007, 02:38 AM
clownassassin clownassassin is offline
Junior Member
 
Join Date: Jun 2007
Posts: 27
Default Re: WSOP Windfall... What am I to do?

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.
Reply With Quote
  #28  
Old 06-24-2007, 10:22 PM
kahntrutahn kahntrutahn is offline
Senior Member
 
Join Date: May 2005
Location: Inundated with Idiocy
Posts: 1,080
Default Re: WSOP Windfall... What am I to do?

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).
Reply With Quote
Reply

Thread Tools
Display Modes

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

Forum Jump


All times are GMT -4. The time now is 02:25 PM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2021, vBulletin Solutions Inc.