Ask HN: How to deal with the new territorial tax system

Posted by thewellofjake on Sunday March 25, 2018 @11:30AM
from the ask-hn dept.

I'm an American citizen living abroad. I own a local company that I fully control and the new tax reform really is going to put me out of business. After the transition into territorial taxation, US persons will be taxed on their share of the post-1986 accumulated earnings and profits of these corporations as of the end of 2017 or November 2, 2017, whichever is highest I already talked to a CPA, and there is no way around it. I'll be personally taxed based on the profit the company made! It is enough money to make me consider shutting down the company. Anyone else in the same situation?

( 5 comments | 6 points | on HN )

Re:Ask HN: How to deal with the new territorial tax system by gscott on Sunday March 25, 2018 @11:47AM (#16672682)

As long as you don't produce a profit you won't be taxed.

[ Parent | on HN ]

Re:Ask HN: How to deal with the new territorial tax system by thewellofjake on Sunday March 25, 2018 @11:56AM (#16672725)

I know that. But the company did produce profit I wanted to invest in expending the business

[ Parent | on HN ]

Re:Ask HN: How to deal with the new territorial tax system by gscott on Sunday March 25, 2018 @01:02PM (#16673099)

I think you can hold around 150k without being taxed on it if you are using it for future improvements if you are a corporation.

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Re:Ask HN: How to deal with the new territorial tax system by thewellofjake on Sunday March 25, 2018 @02:42PM (#16673717)

Interesting. Do you have a reference?

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Re:Ask HN: How to deal with the new territorial tax system by gscott on Friday March 30, 2018 @06:08PM (#16720202)

"Retained Earnings" is what you want to google for.

Holding companies are also interesting http://businesslawblog.ahbl.ca/2012/10/02/benefits-to-using-...

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