Tag Archives: eCommerce tax planning

E-commerce tax planning is unique. Small businesses using a cloud computer (or cloud server) has the ability to shift income to a lower tax state or even offshore.

E-commerce and Mobile Commerce International Tax Planning for the Small Business

E-commerce and Mobile Commerce International Tax Planning  exists because our international tax laws were written by a man born in the 1860’s.  This is not a typo.  He grew up in the world of Pony Express and steamship commerce.

In the 1930’s he became the Chairman of the Congressional Tax Committee.  His view of commerce was the late 1800’s.  Congress has never changed our international tax laws.

These tax laws work just fine in the industrial age but  now these ancients laws create legitimate loopholes for e-commerce and cloud based businesses.

E-commerce and Mobile Commerce International Tax Planning for the Internet of Things.

We are in the age of “internet of things,” 

The  industrial age tax laws provide many unique tax savings for the e-commerce business, the contract manufacturing business, and the internet marketing business.

My easy to read book, International Taxation in America for the Entrepreneur, provides the tried and true blueprint for saving taxes for today’s E-commerce businesses.  I have the first three  chapters on this link.

The first three chapters are easy to read but are hard to believe.  I mean, is it really possible that Congress has done nothing about international tax laws since the Great Depression in the 1930s?

And there is more unbelievable events.  The designer of the tax law was born just after the Civil War.  His father served in the Confederate Army.   His parents named him after Confederate General Robert E. Lee.

And there is more.   The writer of our international tax law had only a high school education.  To him, text messaging was the telegraph.

So, get the first 25 pages, for free, of my popular book on international tax planning with an emphasis on e-commerce and cloud based products on this link.

Or buy the book at Amazon for $9.50, on this link.   By the way, Amazon has a seven day return policy.  So, if you don’t like the book, just send it back (which is easy to do as a Kindle book0

Now, if you want to take your international tax planning to the next lever, then contact me, Brian Dooley, CPA, MBT  at [email protected]

This link has another blog in saving taxes in the e-Commerce and virtual computer world.

 

Saving Taxes in the E-commerce & the Cloud (Virtual) Computer World

cloud computer tax, tax planning, saving taxes, international tax planning,

E-commerce businesses are saving taxes with cloud computer tax planning.

E-commerce tax planning and Cloud tax planning uses unique tax laws.  As a result, saving taxes in this century’s cross-border business environment is easier than ever.  

Small businesses are saving taxes with eCommerce tax planning and cloud computer tax planning.  

The cloud has level the playing field between small business and big business.  Amazon is leading the way.

 Small businesses can benefit from cloud computer tax planning.  

Cloud tax planning allows big state and federal tax savings.  A popular term for this is “third wave” tax planning.  The second wave was most of last century and a little of the 1800s.  The first wave is from  10,000 BC to the late 1800s.  This explains the loophole.  Our tax laws were designed in the early 1900s.  While the laws are more complicated, the basis framework is unchanged.

We all have heard people say that things are not what they used to be.  This is particularly true in American business.  In 1910, electricity was not in the White House.  Cars were laughed at with jokes like “Get a horse!” 

Phones were rare, and there was no air travel.  U.S. E-commerce tax laws are written for last century’s business.  E-commerce tax planning provides significant tax savings.   Here is what has gone wrong for the Government and good for small business.

  Who is this man?    He is Robert Lee Doughton.   He was the powerful chairman of the U.S. Congressional committee that writes the tax laws.

This man designed and wrote our international tax laws. His education was only high school. His father fought with General Robert E. Lee (General of the Confederate States of America).  He was named after the General.  He was born in 1863. His view of international commerce was via steamship

In 1939, he wrote the international tax laws that govern today’s international taxation in America.[1]  Most of the congressional representatives who wrote the 1939 tax code were born before 1900.    Their view of the world was what you see in many silent movies … and so was their tax law.

Their idea of technology was steamships and the telegraph.  It is this world vision that governs how the U.S. taxes international business and investment today.

On this link, you can view my forty-minute of my presentation of the California Society of Certified Public Accountants on profiting from Congress’s failure to innovate.

Successful E-commerce international tax planning revolves around a major flaw in American tax law caused by the speed of change (more on this link).  

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

[1] Congress renamed the tax code in 1986 to the “Internal Revenue Code of 1986.” As I wrote this, I realize that 1986 was just at the end the “second wave” of business. The tax consequences of leaving the economics of the second wave and moving into the economics of the third wave are discussed in this video.

 

The 2018 International Business Income Amazing Tax Savings

The amazing tax savings of international business income has been used by firm such a Google, Amazon, Ford and other big businesses for a century.  Now, small business get the same big tax break. 

What are the tax savings of international business income?

No U.S and no state income taxes for a start.  And there is more in the form of compounding growth.   Privately owned businesses do not have access to capital (money) from the public.  Money is from banks (yuk) or  from after tax profits.

The faster a business grows, the more money it needs to cover increase payroll, more rent and the cost of additional inventory.   Bank debt is risky because a few slow paying customers can cause you to go into default.

After tax profit is greater when the tax is smaller.  International business income can be taxed at zero; however, the usual tax rate is about 17%.

Ian has a business in the United States and in Canada.   They both make $100,000 a year.   With a 15% Canadian tax, the Canadian business has $85,000 after tax to purchase more inventory.

Back in the United States, with a combined U.S. and state tax rate of 40%, the business has only $60,000 to purchase more inventory.

The Canadian business sales more inventory because it has more inventory.  The profits keep compounding faster in Canada.

The Zero percent tax rate applies to international business income from  ecommerce businesses that sale intangibles (such as travel services, music, cloud storage, e-books, entertainment and information).

These business’s hub is their computer server.  The source rules (on this link) provide that many (not all) e-commerce income is foreign source when the computer server is located outside of the United States. 

E-commerce tax planning is new only because ecommerce is new. 

International business income from intangibles has unique tax laws.  With property planning,  the international business income can be foreign source income.   I want to emphasize proper planning.

Planning needs to start when you start the business.  When  a firm like Google plans  a new product, they have also  completed the tax plan.   While small businesses start the business and bungle along until year end.  Then they discover they owe lots and lots of tax.

If you want to learn more, then please check out this blog on the topic.

E-commerce Internet Cloud Business Tax Planning and Strategy

Using last Century's infrastructure is fatal to you business. Using last Century's tax strategy is also fatal to your business.

Using last Century’s infrastructure is fatal to you business. Using last Century’s tax strategy is also fatal to your business.

Last Century’s tax concepts are not a viable  E-commerce Internet Cloud Business Tax Planning and Strategy.

I was traveling last summer and British Air demonstrates announced that its worldwide computers are down, again.

My question to you is: “Is your e-commerce and internet business tax planning like BA’s  XP style computer?”

Here is the problem with small business tax planning.  Your CPA is using the same tax plan as when your computer used Window’s XP.  You have updated your infrastructure for your business but not your tax plan.  Business in 2016 is nothing like in 1998.

Congress reported that U.S. business that legitimately plan their taxes have a 14% tax rate.  And there is more.  Half of those business paid legally paid no tax.
My question to you: “Are you paying more than your fair share in taxes?”

Here are four indicators that your CPA is stuck in the 1900’s XP tax planning:

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Best International Tax Planning Book on the Planet, By Far

Here are the first few chapter of my easy to read book International Tax Planning in America for the Entrepreneur.   The book is a quick two-hour read with little tax jargon.  You will quickly learn the fundamentals of international taxation planning.  My international tax planning book explains the unique tax savings for the small business,  web based business, tax planning for importers and exporters and the best tax structure for the foreign business coming to the U.S. 

You can get the book on Amazon on this link.  The Kindle is only $9.50  (get the Kindle App for the PC on this link).  The book is also available in paper and audiobook. 

International Taxation in America for the Entrepreneur is the fastest tax answering publication in America. Both the  Kindle and PDF edition have our exclusive quick search function. Just type your topic and find the answer to any international tax planning question.  The audiobook is perfect for those on the road and traveling. 

International Tax Planning Book for the Cross Border Family

Cross Border families have special needs because America’s laws differ from every other country. The multi-national family risks paying taxes in more than one country.  Choosing the correct tax structure before arriving in the U.S. is required. 

A cross-border business has a similar problem.  Multi-national businesses often experience double taxation on one item.  American tax laws are different from the rest of the World.    Thus, you need the best international tax planning book on the Planet.  

Using  “plain English” my book provides solutions to issues regarding cross border taxation.  The examples are easy to understand.  

 For those looking for advance tax planning, the hundreds of footnotes and hyperlinks to court cases and tax planning articles are just a mouse click away.

My international tax planning book is available in audio, Kindle and hard copy.  Need more information.  Then please check out this blog post in offshore e-Commerce international tax planning.