A video released by the Washing State Representatives, Democratic representative Ross Hunter of the 43rd district discusses six opportunities in which tax evasion, by law, is legal. Tax avoidance is the legal term used to define loopholes within the American tax system that cost the Federal Government upwards of $25 million in unpaid taxes.
Of the six, I’m going to touch upon one loophole that allows individuals to avoid paying the sales and use tax. In his example, an individual living in Washington state has a shell corporation in the West Indies that owns a sailboat. Now, because the sailboat stays in the West Indies and it is open by the shell corporation, the individual living in Washington doesn’t owe any sales tax. Under the United States tax code, that method is perfectly legal without the use of a loophole.
Another example can involve the same shell corporation owning the same boat. This time, however, the individual in Washington state brings the sailboat to Washington state and parks it there. Since the shell corporation owns the sailboat, there is no way to track the sales purchase back to the individual in Washington thus avoiding payment of taxes and the need to hire tax evasion lawyers.
Tax evasion is a serious crime in America. The charges and penalties that are associated with it can result in jail time and expensive fees.
For more information about the types of tax loopholes that exist today in the United States tax system, view the video below.
When a person gives someone, or a non-charitable organization, money or property that is equal to or above a certain amount, a gift tax is imposed. A gift tax is not something that is understood by most people. When it is first heard, most individuals say, “Wait a minute, the government wants to tax me on money I’m giving away?” There is that possibility, but in most cases you will never be taxed on the money you give, as long as it is under a certain amount at one time.
Understanding these levels of gifts is important, for example, to an Oakland gift tax attorney to determine how they can help individuals who may have given away large sums of money and don’t have a clue as to why they are being taxed on it.
There is a $12,000 limit on giving at once to one person. If exceed that amount, there is a level up to $1,000,000 that you can give away before you are heavily taxed on that gift. You may also give that amount of $12,000 to as many individuals as you wish, as long as each gift doesn’t go over that amount. For most people this is not an issue to worry about, but for individuals in California who do have that money to be able to give away, it is important for them to consult with an attorney to find out all the possible information they should know before they allocate their money to give to others.
In this video, a Kiplinger representative talks with the magazine’s senior editor about the federal gift tax. They clarify the purpose of the tax as a way to keep individuals from giving away all their money before they die, and avoid having to pay an estate tax. They also explain about lifetime exclusions and more. If you have any questions about gift tax, enjoy this helpful video.
Jeff Fraser has a degree in Psychology from Boston College (magna cum laude) and is a graduate of Boston College Law School. He has over 30 years’ experience in private practice, including all types of personal injury, divorce, wills and estates, real estate, and business law. Mr. Fraser has been awarded the prestigious AV® PreeminentÂ? Peer Review RatingSM by Martindale-Hubbell® in recognition of his skill and integrity. As a MA personal injury lawyer, Mr. Fraser also has extensive experience as a mediator in civil, divorce, and estate cases.
Helen Galanopoulos is a graduate of Harvard College (cum laude) and Boston University School of Law where she served as editor on the American Journal of Law and Medicine. Ms. Galanopoulos has been in practice for 18 years and concentrates in personal injury claims on behalf of plaintiffs.
Couldn’t believe this video when I saw it! This sounded like just another CBS news brief. This man Lee owns his own coffee shop. However, in the back, under California state law he is able to sell and distribute marijuana. Although federally this is illegal, state law allows this to happen. There is now a tax proposal that 56% of voters said that pot should be legalized and passed. I wonder how that will work in other states – like Arkansas. Will we be trying to hire Little Rock tax planning attorneys to help us with this? Who knows; in the next few years there could be a debate about this.
