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Ask HN: How to deal with the new territorial tax system
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?
- gscott 9y agoAs long as you don't produce a profit you won't be taxed.
- thewellofjake 9y agoI know that. But the company did produce profit I wanted to invest in expending the business
- gscott 9y agoI think you can hold around 150k without being taxed on it if you are using it for future improvements if you are a corporation.
- thewellofjake 9y agoInteresting. Do you have a reference?
- gscott 9y ago"Retained Earnings" is what you want to google for. Holding companies are also interesting http://businesslawblog.ahbl.ca/2012/10/02/benefits-to-using-a-holding-company/ http://businesslawblog.ahbl.ca/2012/10/02/benefits-to-using-...