Tag Archives: avoiding state income taxes

Will Robots Save You Taxes and Your Business?

international tax planning, ecommerce tax planning, cloud computer tax planning, offshore tax planning,

international tax planning for eCommerce.

The U.K. Financial Times reports that in the UK, alone, robots will be replacing 15 million British workers.  In the U.S., we estimate 100 million workers.

The Newspaper’s article points out that lower paid workers are most at risks.  Well, we have seen this a the supermarket where the computer checkout is more attractive than the human ones.  

Exploiting the tax savings require you to think outside of the brick and mortar world.

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Using Foreign Offshore Trusts to Hold Business and Investment Assets

Save taxes and protect assets by using a foreign offshore trust. Nat King Cole was the first famous American to teach the IRS Americans legally avoid taxes.

Save taxes and protect assets by using a foreign offshore trust. Nat King Cole was the first famous American to teach the IRS Americans legally avoid taxes.

If you believe your heirs are not capable of managing your assets, then a foreign trust should be considered.  Beginning in the 1970’s, wealthy Americans have used offshore trusts for their international tax planning and estate tax planning.

Beginning in the 1970’s, wealthy Americans have used offshore trusts for their international tax planning and estate tax planning.

In some cases, the foreign trust is used merely to avoid state income taxes.  The design of the trusts determines its tax profile.  For example, Nat King Cole legally avoided income taxes (both Federal and state, California) and estate taxes.

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Saving Taxes with the IRS New Nevada Private Trust Company Law

saving taxes, how to save taxes, tax planning,

Saving taxes with an IRS approved tax plan is called a private letter ruling.

The IRS did a great job in making certain states, such as Nevada, a great location for estate planning.  The newest IRS approved trust planning method is the family owned trust company. These are called a “private trust company.”  

This is a Nevada corporation owned by you and your family.  Nevada does not require you to obtain any particular license. 

Nevada is the leading state with their new and easy to use private trust company law.   The IRS guidance is on this link.   

Most importantly, this trust can eliminate state income taxes.  Residents of California and New York have found Nevada the best way to avoid income taxes and inheritance taxes. 

Keeping Control while Eliminating State Income Taxes

Trusts have protected families for more than a thousand year (starting with the Great Crusade).   A  Nevada trust can last up to 365 years.  A Nevada trust is known as a dynasty trust.  These trusts can also move offshore.  A  private trust company allows an orderly succession of asset management upon your death.  It allows you to keep control and save taxes.

Stop paying State Income Taxes with the IRS Designer Trust is discussed in this related blog posting.  Does it seem odd that the IRS would specifically design a trust to allow you to avoid state income taxes legitimately?  The Federal Government loses $Billions in taxes because of the state income tax deduction.  Since the 1986 Tax Reform Act, the Feds have been trying to repeal the deduction for state income taxes.     

Your private trust company is the trustee of the IRS Designer Trust.

Managerial  & investment control retained by you.  The courts approved this in  Alexander v. Commissioner, 190 F.2d 753 (5th Cir. 1951).

International business headquarters

The Department of Treasury is attempting to attract foreign investors to America.  The Nevada tax haven status is the perfect location for the foreign investor.

The State of Nevada understands that business needs asset protection trusts.  Nevada’s sophisticated and flexible trust laws make it the best state for asset protection.

Nevada’s family trust company laws allow you to keep control of your assets

Many clients have mistakenly used a relative as trustee.  This can invalidate their estate planning. Section 2036 to 2038 prohibit a family member or an employee acting as trustee. More importantly, the family member may be inflicted with dementia.  Removing by the court is costly and emotionally painful.  

If you need to up the quality of your tax planning, then contact me, Brian Dooley, CPA, MBT, [email protected]