Tax Strategies for professional poker players in the US
I thought it would be a cool idea to start a thread for tax strategies in the US. This seems to be something that isn't
When it comes to hiring attorneys, CPAs, etc you either need to pay them a lot of money to get high level representation or just do everything yourself. The worst thing is hiring low-mid level professionals - they won't look out for your best interests, won't communicate well, etc. Just learning this at the ripe age of 40.
I disagree and agree.You need to shop around, there are
I don't think the problem is the tax preparers (or at least that they are the primary problem). The problem is that the U.S. tax code is messed up beyond comprehension. Special interests paying off congresspeople have made it impossible for ordinary people to honestly file their taxes.
You would still need to pay taxes to the USA. The only way around it would be to renounce US citizenship which is a big deal. Might be worth it if you are a very serious pro who doesn't have any real ties to home.
If the USA thinks you are renouncing citizenship to just avoid taxes, they will refuse to accept your renouncement. Thus, you will still owe taxes as far as they are concerned. Meaning you will never be able to reenter the country without facing possible arrest for non-payment of taxes.[/QUOTE]
From my understanding, this is incorrect. When you renounce, you must certify that you have properly paid your taxes for the previous 5 years. Once this is done, you can renounce. This is to say, you will not be allowed to renounce to avoid paying current tax obligations (this might have been what you meant). You are allowed to renounce to avoid future tax obligations (i.e., "I hate the high taxes in America and want to leave"), but then the Reed Amendment is triggered (this is very rarely due to evidentiary standards), which will ONLY preclude you from ever entering the United States again.
You would still need to pay taxes to the USA. The only way around it would be to renounce US citizenship which is a big deal. Might be worth it if you are a very serious pro who doesn't have any real ties to home.
If the USA thinks you are renouncing citizenship to just avoid taxes, they will refuse to accept your renouncement. Thus, you will still owe taxes as far as they are
From my understanding, this is incorrect. When you renounce, you must certify that you have properly paid your taxes for the previous 5 years. Once this is done, you can renounce. This is to say, you will not be allowed to renounce to avoid paying current tax obligations (this might have been what you meant). You are allowed to renounce to avoid future tax obligations (i.e., "I hate the high taxes in America and want to leave"), but then the Reed Amendment is triggered (this is very rarely due to evidentiary standards), which will ONLY preclude you from ever entering the United States again.[/QUOTE]
My information might be out of date. But I have a friend who tried to renounce his citizenship many years ago. At the time, he hadn't lived in the U.S. for over a decade, and did not owe any taxes. They refused to let him renounce, stating that they thought he was trying to avoid future taxes. Let's just say if a billionaire tried to renounce, they probably tell them no, we're not letting you off for all those future taxes you would otherwise have to pay us on your investment income.
