US Citizen Trading Crypto Full Time High Value options to reduce Tx liability

[KimJongsBrother]

Hi
As as US citizen Cryto Trading profits once realised >$100k p.a. (alot more)
Are there any benefits to setting up offshore company structure to reduce my US Tax Liability or does FACTA pose a reporing concern even thru a structure considering director/UOB registers etc.

Or are the only real options to
1. Move to one of the 7 Tax Free States
2. Leave and gain new citizenship

Thanks

 

[Clip]

You have limited options with FATCA.

Look for a company in a territory where is easy to cash out and can deduct easily any expense. The rest of profits unfortunately you need to declare and pay tax.

I know some people doing this with Cayman foundations, as they don't declare profits, they just use the company to pay expenses, salaries, invoices.

 

[Spinat]

I would speak with a good tax advisor in Delaware or Wyoming, they may be able to help you to reduce taxes at least.

 

[Clip]

Delaware or Wyoming

I would add Puerto Rico or Nevada

 

[Spinat]

I would add Puerto Rico or Nevada

not to forget Alaska and Nevis which also was discussed here a few times

 

[Davis123]

P

not to forget Alaska and Nevis which also was discussed here a few times

What good banks will work with Nevis ? I am curious as I had a Nevis company a decade ago and good banks even then refused to work with them. There is tax on non resident companies too there .? I am curious too

 

[Spinat]

I'm afraid to repeat my self, but I would speak with some professionals in the State of your choice! Otherwise use Transferwise they accept all US companies.

 

[Davis123]

Hi
As as US citizen Cryto Trading profits once realised >$100k p.a. (alot more)
Are there any benefits to setting up offshore company structure to reduce my US Tax Liability or does FACTA pose a reporing concern even thru a structure considering director/UOB registers etc.

Or are the only real options to
1. Move to one of the 7 Tax Free States
2. Leave and gain new citizenship

Thanks

They will not let you leave so easily. To leave you have to renounce your citizenship in front of the US embassy staff and have impeccable tax records or else. US is not easy like China etc.

 

[CaptK]

Use a nominee then you pay yourself a salary and keep the rest in crypto. You will pay tax on the salary but the company card is free for you to use on all your purchases. Just remember that if your paying yourself 30K per year you can't go and buy a Lamborghini.

 

[Davis123]

B

Use a nominee then you pay yourself a salary and keep the rest in crypto. You will pay tax on the salary but the company card is free for you to use on all your purchases. Just remember that if your paying yourself 30K per year you can't go and buy a Lamborghini.

My cousin is a US tax cpa and his advice is US disregards a nominee structure plus if UBO is known to a bank they will have to report you as per FATCA. It will be interesting to know from your experience CaptK.

 

[CaptK]

B

My cousin is a US tax cpa and his advice is US disregards a nominee structure plus if UBO is known to a bank they will have to report you as per FATCA. It will be interesting to know from your experience CaptK.

Depending on what he is using to trade the majority of exchanges do not require KYC. Or alternatively you register the exchange in the name of the proxy. You have the seed phrase and change it the proxy can not access the account at all.
He pays himself a salary as a "trader" and keeps the funds in the proxy name. He can set up a EMI (wirex) and use that to receive funds and the debit card is his. Wirex also allows you to trade crypto on its platform.

You can hold upto GBP 500K in wirex maximum daily deposit and withdraw of 50K and upto 10K per day via debit card.

Any issues can be dealt with on the App.