So little written on tax planning for the virtual world (today’s artificial intelligence, e-commerce websites and big data computer systems).
Virtual business tax planning is virtually nonexistent. Yet, the tax savings are huge for a business in the cloud. Special tax laws allow a controlled foreign corporation to avoid taxes when the cloud server is located outside of the U.S.
For example, placing the computer server in a tax haven can create tax-free income
Currently, Canada is an attractive tax haven for the international eCommerce cloud business. Other countries include the Isle of Man and Cyprus.
If you live in a high-income tax state, such as California, you might want to place your computer server in Nevada. This is an easy way to save on state income taxes with the right type of corporation.
Learn how to save taxes with international tax planning at that the California Society of CPA’s continuing education video below.
How do you save taxes in the virtual world? Well, envision a world with no electricity, no cars and radio. American international tax laws apply.to this world and not the cloud computer world.
Men born in the late 1860 and 1870 wrote today’s international tax laws in 1939. Despite the thousands of new tax laws, the international tax laws remain unchanged. These ancient tax laws provide tremendous tax savings for e-commerce businesses and cloud base businesses.
If you want to learn creative virtual tax planning, call me, Brian Dooley, CPA, for a free one hour brainstorming conversation at 949-939-3414.