How To Pay Zero Tax On Your Billion Dollar Profits
No Tax on Big Profits
You can pay zero tax or no tax by applying your current year profits to offset your past year losses.
It was reported last week that General Motors paid no federal income tax for 2011 on profits of $7.6 billion, which was $3 billion more from the previous year. GM has earned more than $13 billion in profits since 2009, when it received a massive $49.5 billion bailout.
“We did not pay federal income tax last year,” said GM spokesman Jim Cain. The Detroit News, who broke the news, also quoted Cain as claiming GM would not have to pay federal taxes “for many more years.”
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Americans Living Abroad Are Acting Like Superman
A year ago, in Action Comics, Superman declared plans to renounce his U.S. citizenship.
Now, I did not know that. But a year ago, I advised few of my clients that renouncing their American citizenship might be the only way to keep IRS and USA government off their back.
According to a news report, in 2011, almost 1,800 people followed Superman’s lead, renouncing their U.S. citizenship or handing in their Green Cards. That’s a record number since the Internal Revenue Service began publishing a list of those who renounced in 1998. It’s also almost eight times more than the number of citizens who renounced in 2008, and more than the total for 2007, 2008 and 2009 combined.
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In Ontario, Canada Super Rich are now the Super Villains
If you live in Ontario and one of 23,000 Ontarians who is making over $500,000 you are branded as Super Rich by the
Super Rich Are Target of New Tax
The new tax would move Ontario income tax rate to 48.5 per cent for the Super Rich.
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US Tax Grab Is Targeted At Canadian Real Estate Investors
Buying a House - Pay Cross Border Tax
Canadians, have been investing at an increasing rates in the US rental and vacation properties since the US housing market took a dive in price in 2008.
IRS tax law for off-shore investors (Canadians) states that, gross rental property income should be taxed at source @ 30% rate by the property management company and remitted to the IRS each month. Only filing a Non Resident USA tax return, Canadians can get back some of the rental income deducted at source. Since most Canadian does not have any mortgage, they cannot claim mortgage interest expense against their rental income, and almost 100% of the income is taxable in USA.
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2012 Offshore Voluntary Disclosure Initiative Announced by IRS
IRS OVDI Tax Collector
1. A USA Citizen
2. A Dual USA Citizen Living Abroad
3. A USA Resident
4. A USA Green Card Holder Living Abroad
United States Internal Revenue Service (IRS) has been aggressively pursuing US persons (including US citizens and green-card holders living abroad) who have failed to report foreign income on their US income-tax returns and/or failed to report foreign bank and investment accounts on a Foreign Bank Account Report (FBAR). A US Person, must file income tax return with IRS, regardless of their residency.
IRS implemented amnesty programs since 2009 for US citizens to come forward with their foreign income reporting. More than 30,000 people have voluntarily complied since 2009, at least 30 have been criminally indicted and the IRS has netted a total of $4.4 billion in unpaid taxes, interest and penalties.
The State Department estimates that more than 6 million citizens live overseas, excluding those in the military, yet the IRS receives only 1.6 million tax returns each year with foreign addresses. And just over 500,000 FBARs were filed in 2009.
On January 9, 2012 the IRS announced a third amnesty, formally known as the Offshore Voluntary Disclosure Program. It is substantially the same as the 2011 amnesty (aka 2011 OVDI), with some exceptions:
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