By
Gary Scott
There are tax benefits to be
gained from having an offshore trust as well as an overseas business. Here is
an offshore trust tax tip from tax attorney Carlos Kepke:
Offshore Trust Tax Tip
"A foreign trust is an excellent
entity to use to hold shares in start-up businesses. Not only will utilization
of a foreign trust afford asset protection benefits but also, and more importantly,
it can provide significant United States ("U.S.") income tax (and estate
tax) benefits.
A properly structured foreign
trust, once perfected, owning shares in a start-up business will not have to pay
U.S. capital gains tax on the sale of such shares.
For example, if the shares of
a start-up business valued at say $5,000.00 were held by a foreign trust from
the beginning and later sold by that foreign trust (if perfected) say for $500,000.00
- meaning that the business was successful - then the gain of $495,000.00 would
not be subject to U.S. capital gains tax. This translates into a savings of about
$100,000.00 in U.S. tax.
Perfected foreign trusts present
a great opportunity for shareholders of start-up businesses. Shareholders should
consider using foreign trusts for this purpose where there is an expectation of
appreciation in the value of the shares. For more information, email carloskepke@webtv.net
This is a valuable offshore trust
tax tip.
Until next message may your global
business and investing be good.
Gary
P.S. Learn more about offshore
trust tax tips in the correspondence course International Business Made EZ at
GaryScott.com
Real international business is
fun and can bring tax advantages and asset protection. Gary and Merri Scott gain
tax advantages as they enjoy developing their healing center in Ecuador
