Tag Archives: California tax planning

Cloud Continues to Disrupt Business – 1,000s of Robots Laid Off

International tax planning compares last century's tax laws to this century's business. Then , it exploits the differences.

International tax planning compares last Century’s tax laws to this Century’s business. Then, it exploits the differences.

Cloud ecommerce tax planning changes as technology changes. The U.S. Senate reported that businesses that update their tax plan are taxed at only 14%..

You have to compete with the future. Blockbuster’s demise is old news from the beginning of this century.   Just ten years later, the killer of Blockbuster is dying.   Redbox has closed (laid off) 1,000s of it robotic DVD rental kiosks in the U.S.

 In 2015, it closed all of its DVD rental kiosks in Canada.   Netflix and other video streamers are slaying the king of the DVD rental kiosks. Redbox’s $1 a night became too expensive. Netflix is $10 a month, and you can watch as many hours as you want with 50,000 choices.   With Redbox, you had to rush to the kiosks to return the DVD.

American international tax laws were written and were designed for a 1930 economy.

Offshore tax planning compares the out of date concepts in our tax laws to 21st Century business. Then, it exploits the differences.  Your tax planner must forget last century’s tax planning and learn this century’s.  Even the first ten years of this century is partly obsolete.  

If this was 2005, you would not have a smartphone. Yep, no apps.  I don’t know about you, but I use my iPhone and iPad for business more than I use my landline and my computer combined.   

With the iPhone came the  streaming of music.  If the computer server hosting the music was located in the Cayman Islands, the income would be foreign source income and not U.S. source regardless of the location of the customer.

Cloud ecommerce tax planning changes as technology changes- Look at Banking

Great tax planning sees the trends and changes.

Look at banking.   Are ATM’s the next to be laid off?  Do you want to deposit your checks like this,  in the dark watching over your shoulder?

Internet businesses can decide who is going to tax them just by using the cloud.

Internet businesses can decide who is going to tax them just by using the cloud.

Or like this- At home with a smartphone app where it is safe. By changing your business, you not only survive, but you can also completely shift your tax profile.

For example, if you distribute a product, spend some time learning about 3D printing or using a fulfillment center.   If you have an e-commerce business,  consider streaming your product versus providing a mp3 file or a pdf file.  Internet tax planning starts with shifting the source of the income.

For some, it is merely a move to Nevada or Texas to escape California or New York taxation.  For others, it is outside of the U.S., such as Canada (yes, it is an internet tax haven) or Ireland.  By the way, California tax planning and New York tax planning just became more important.  State income taxes are no longer deductible. 

if you need help with your international tax planning, then contact me at [email protected]

Tax Planning with GOP Tax Law with Tax Talk on Blog Tax Radio

Tax Planning with the OP Tax Bill uses sophiscated tax laws.  The days of simple tax strategies are gone with the new GOP tax laws.   The GOP Tax Law is written for Big  Business.  If you want to save taxes, you will need to think and act like Big Business.

Learn these sophiscated tax laws with my radio show, Tax Talk. We support a subscription-free internet content supported by advertising.  

Each episode as a 60-second commercial by the company hosting our radio show.

The first episode is the new IRS designer trust… designed by the IRS to avoid  state out of state income taxes. 

Tax Planning with the GOP Tax Bill requires you stop paying state income taxes. 

The trust is the new “Nevada self-directed trust”  You can keep control and avoid state income taxes.  

Tax Planning with the GOP Tax Bill requires you to protect yourself from the IRS’s Big Brother Supercomputer exposes the IRS “financial DNA” of each of us stored in its new Big Data computer.

Tax Planning with the GOP Tax Bill with more Podcasts

Find additiona sophiscated tax planning Podcasts on this link for  Provocative Tax Planning on BlogTalkRadio.  For small business international tax planning with the GOP tax bill, please see this link.

If you need help with tax planning with the GOP Tax Bill, then contact me, Brian Dooley, CPA, MBT, at [email protected]

International Tax Strategy for E-commerce and the Virtual Robot Store

If your CPA’s tax planning is similar to what you were told or read (on the internet) last century, then you are paying more than your legal obligation in taxes.     Think of the iPhone you had last Century?  Okay, you caught me.  There was no iPhone in the 1900s or even the first part of this Century.

Bank of America is showing us the future.  As you read below, not only will they make more money,  they will pay less in taxes.

Internet tax planning for the small business in the virtual world. Bank of America is creating a branch without people

Internet tax planning for the small business in the virtual world. Bank of America is creating a branch without people

Robots are better than employees.  No Obama Care insurance (or whatever is replacing it), no overtime, no sick leave or all of the other rules that states such as California impose.

I was at the main branch of Bank of America in Newport Beach, California.   I felt like I was sneaking into a museum after hours.

By the way, rent in Newport Beach is not cheap and the main branch is very large and impressive.   But, who is being impressed?  No one goes into the branch and when you do, you see rows and rows of empty desks.

B of A announced that they are opening branches without people.  ATMs will take your deposits, help you get a car loan or home loan and give you money.   You can talk to people face to face; they just will not be in the branch or even the state.   They can be an income tax-free state.   I assume that they will be working in a Bank of America virtual center.

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California Franchise Tax Board Free and Best Tax Research and PLanning

I purchased CCH’s California tax publication. Talk about a waste of money!!

So, I contacted Google and here is the great result. Not only does it have all of the tax law and FTB regulations, it also has its legal rulings.

I solved my tax issue in a few minutes.   I used quotation marks around the special words.  When I had too many results, I used the negative sign (-), to eliminate some of them.  For example, I was researching simple trust and the throwback rule.   I placed “simple trust” in quotes. To remove the results involving form 199, I type -199.

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, at [email protected]