a proposed deduction

[illegalbeagle]

What is the name of your state? the United States

suppose i was to secure the use of my name in favor of a revocable trust, retaining the beneficial interest or sharing that benefit out to whomever. Now the trust could charge me 100% of any income for the use of my name (by my voluntary agreement), and i could deduct it as an business expense... reducing my employment income to zero. eliminating any employment tax, and state and local taxes since the trust is domiciled in Belize

returning the income up to my standard deductions and exemptions, and distributing the rest of this income to all my overseas relatives and friends who arent using their U.S. personal exemptions. who in turn will simply give me back the money, which i never sent anyway. Just the attribution of income.

or ?

tax law sensible persons only need reply- not random wonkers.

 

[FlyingRon]

Revocable trusts are disregarded entities for taxation. Any income the trust generates is taxable to YOU.

You can forget about all the subsequent shenanigans.

 

[illegalbeagle]

thats exactly what I said, wonker. the income goes to the beneficiaries, including me.


but it comes back as distributions not employment income. thereby avoiding social security, local wage taxes etc. and matching up with the standard deductions and exemptions of all the beneficiaries, for a net zero tax and a total refund on all accounts.

apparently you agree and dont like it, for running circles around your limited, penurious and miserly spirit. I accept the vote of confidence.

 

[TheGeekess]

What is the name of your state? the United States

suppose i was to secure the use of my name in favor of a revocable trust, retaining the beneficial interest or sharing that benefit out to whomever. Now the trust could charge me 100% of any income for the use of my name (by my voluntary agreement), and i could deduct it as an business expense... reducing my employment income to zero. eliminating any employment tax, and state and local taxes since the trust is domiciled in Belize

returning the income up to my standard deductions and exemptions, and distributing the rest of this income to all my overseas relatives and friends who arent using their U.S. personal exemptions. who in turn will simply give me back the money, which i never sent anyway. Just the attribution of income.

or ?

tax law sensible persons only need reply- not random wonkers.

Alrighty then.

 

[I'mTheFather]

Many here would prefer that random wonkers not post idiotic schemes.

 

[davew128]

Apparently the wonker has absolutely NO idea what a revocable trust is for tax purposes and why his idiotic scheme = FAIL.

 

[illegalbeagle]

so that's two more votes for a yes, then.

you prefer i dont post, but cant help to respond...

i challenge any of you to prove me wrong- put up or shut up.

 

[FlyingRon]

I told you in the first post why it wound't work. Regardless of who the beneficiaries are, the income is taxable to the grantor (i.e. you). That is what a disregarded entity is. As far as the taxman is concerned your revocable trust is identical as if you personally held the asset.

 

[Proserpina]

so that's two more votes for a yes, then.

you prefer i dont post, but cant help to respond...

i challenge any of you to prove me wrong- put up or shut up.

Didn't you promise that you weren't going to return to this site?

Liar, too, huh?

Le sigh.

Folks - check the post hx.

 

[davew128]

Its inconceivable to me that anyone with an IQ of three digits could read about a revocable trust under tax law and not understand how its viewed.

 

[cbg]

Personally, I haven't seen any evidence that this poster has an IQ in three digits.

 

[illegalbeagle]

@prosperina: get bent. and get off my thread. dont come back, ever. and never respond to any of my posts. i said if get banned i wont be back. liar, you. and a few other words im not allowed to say.


@flying ron: ok, then an IRREVOCABLE TRUST. whatever! if thats the only flaw then its no obstacle. and this minor criticism doesnt address the basic point- how to act as a pass-through and turn W2 income into regular only-taxed-once income that matches with my deductions and exemptions; and matches with the exemptions of the 6.7 billion human beings on the planet who arent americans and arent using their u.s. tax exemption. i happen to know more than a few who would gladly give me their exemption; they certainly arent using it. im not using mine actually, and would like to pass it along to benefit someone else.

i dont particularly care if im considered the beneficiary, the main thing is to avoid employment and local wage taxes by converting this income into some other kind of income. the rest of you are too dumb to understand so go away.

 

[LdiJ]

@prosperina: get bent. and get off my thread. dont come back, ever. and never respond to any of my posts. i said if get banned i wont be back. liar, you. and a few other words im not allowed to say.


@flying ron: ok, then an IRREVOCABLE TRUST. whatever! if thats the only flaw then its no obstacle. and this minor criticism doesnt address the basic point- how to act as a pass-through and turn W2 income into regular only-taxed-once income that matches with my deductions and exemptions; and matches with the exemptions of the 6.7 billion human beings on the planet who arent americans and arent using their u.s. tax exemption. i happen to know more than a few who would gladly give me their exemption; they certainly arent using it. im not using mine actually, and would like to pass it along to benefit someone else.

i dont particularly care if im considered the beneficiary, the main thing is to avoid employment and local wage taxes by converting this income into some other kind of income. the rest of you are too dumb to understand so go away.

What you want to do is impossible. There is no way that you can change the nature of the income. If you were talking about investment income (income from interest, dividends or stocks) you could change the income by changing the type of investment. However, you are talking about W2 employment income....which is only taxed once to start with, therefore I am not sure that I even understand your problem.

 

[Proserpina]

@prosperina: get bent. and get off my thread. dont come back, ever. and never respond to any of my posts. i said if get banned i wont be back. liar, you. and a few other words im not allowed to say.


@flying ron: ok, then an IRREVOCABLE TRUST. whatever! if thats the only flaw then its no obstacle. and this minor criticism doesnt address the basic point- how to act as a pass-through and turn W2 income into regular only-taxed-once income that matches with my deductions and exemptions; and matches with the exemptions of the 6.7 billion human beings on the planet who arent americans and arent using their u.s. tax exemption. i happen to know more than a few who would gladly give me their exemption; they certainly arent using it. im not using mine actually, and would like to pass it along to benefit someone else.

i dont particularly care if im considered the beneficiary, the main thing is to avoid employment and local wage taxes by converting this income into some other kind of income. the rest of you are too dumb to understand so go away.

Pumpkin, you don't get to choose who responds or doesn't respond.

Clear?

I do hope so.

 

[illegalbeagle]

wrong. employment income is taxed twice, in that there is F.I.C.A. (social security)and local wage taxes that dont apply to investment income. and because investment income can be distributed to any shareholder pro-rata to their inherent deductions, leaving a zero overall tax. the problem is you dont understand even the beginning of what im talking about: changing items of income does not change the nature of the income.

meanwhile there are 6.7 billion human beings all entitled to the ordinary personal exemption of $3,800/year. do the math.

answer to question from other thread- because i like irritating you and the other fake lawyers. and because im scratching all over with poison ivy and cant leave the house. when it dries up, i ll be too busy to stay online.