Thats the hammer to the coffin. Been revisiting these archives every now and then mahn. Tons of value. There are some you miss and some you connect them everywhere
Ironically, once you have a business, books and education can become tax deductible. Meaning the tax code values that $99 Facebook ads course over the non-tax-deductible Harvard PhD tuition. ¯\_(ツ)_/¯
FEIE Tax deduction for US citizens, pay no income tax on first $110k, must spend <30 days in US. $25k+ in Tax saved can fund a very comfortable annual cost of living in the places Bull mentioned. Wild!
US citizens subject to tax no matter where they live or make money in the world. Moving to Dubai does not affect your tax status with Uncle Sam. Or maybe I’m missing something?
Yes Puerto Rico has that tax provision under US tax law, can save bigly there with right circumstances. But moving overseas to other countries (PR is US territory) does not lower your basic US fed tax obligation. There are some kosher maneuvers if u live abroad and have a foreign wife with zero US connection--put the biz in her name and make yourself an employee. That way you pay no Social Security/FICA and you can take advantage of the foreign earned income exclusion. No state income tax abroad too which is nice. But you gotta file with IRS and pay fed tax every year. No getting around that without running foul of the irs. Your mileage may vary.
Article is well received but for the readers, please talk to your accountant. Often times you can't deduct the entirety of your personal rent as biz purposes
What are your thoughts on the "AI Automation Agency" model? Been seeing more and more 20 year old gurus talking about it on YouTube and I feel like it's going to be a similar wave to SMMA.
If you are self employed you can typically deduct your health care as well. If you are running online biz and W-2 makes no sense though, since employer covers the W-2 side
"If you can’t even replace your base salary online it means you are overpaid" 🫡
Thats the hammer to the coffin. Been revisiting these archives every now and then mahn. Tons of value. There are some you miss and some you connect them everywhere
This is such an important read for all.
Ironically, once you have a business, books and education can become tax deductible. Meaning the tax code values that $99 Facebook ads course over the non-tax-deductible Harvard PhD tuition. ¯\_(ツ)_/¯
Ha that is true
Nice. Also the option to form a corporation for possible tax advantages and legal protections.
Yep.
FEIE Tax deduction for US citizens, pay no income tax on first $110k, must spend <30 days in US. $25k+ in Tax saved can fund a very comfortable annual cost of living in the places Bull mentioned. Wild!
https://www.greenbacktaxservices.com/knowledge-center/us-citizen-abroad-taxes/#:~:text=To%20help%20avoid%20this%20negative,is%20the%20Foreign%20Tax%20Credit.
Yeah Another example
US citizens subject to tax no matter where they live or make money in the world. Moving to Dubai does not affect your tax status with Uncle Sam. Or maybe I’m missing something?
For US, Puerto Rico is the tax haven if you transfer your biz. See Brain's earlier posts.
Yes Puerto Rico has that tax provision under US tax law, can save bigly there with right circumstances. But moving overseas to other countries (PR is US territory) does not lower your basic US fed tax obligation. There are some kosher maneuvers if u live abroad and have a foreign wife with zero US connection--put the biz in her name and make yourself an employee. That way you pay no Social Security/FICA and you can take advantage of the foreign earned income exclusion. No state income tax abroad too which is nice. But you gotta file with IRS and pay fed tax every year. No getting around that without running foul of the irs. Your mileage may vary.
PR is for USA
Dubai is for international (we have 30% international readers)
Also there are exemptions if you live abroad in terms of how much tax you pay. As usual see an accountant and pay the amount you owe.
Setting it all up 100% legit is the way to go, since not paying Tax is basically the lowest IQ move in the world. Lower it correctly and move on.
Its the same concept, another example would be how you structure your company in the first place.
If apple can lower its effective tax rate to 13-16% pretty sure you can too with a basic biz.
https://www.sec.gov/ix?doc=/Archives/edgar/data/320193/000032019322000108/aapl-20220924.htm
Also see Gryphon comment below on FEIE
You are. Cost of living…
Ok. Totally unrelated to tax tho.
Article is well received but for the readers, please talk to your accountant. Often times you can't deduct the entirety of your personal rent as biz purposes
Yes should say partial rent you get the idea fixed!
Technically its still his office bro.
What are your thoughts on the "AI Automation Agency" model? Been seeing more and more 20 year old gurus talking about it on YouTube and I feel like it's going to be a similar wave to SMMA.
Won't work
How does health insurance fit into this model?
If you are self employed you can typically deduct your health care as well. If you are running online biz and W-2 makes no sense though, since employer covers the W-2 side