Comments on: Counterparties — Richie Havens: Here Comes the Sunlight http://blogs.reuters.com/felix-salmon/2013/04/04/counterparties-richie-havens-here-comes-the-sunlight/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: DavidLesperance http://blogs.reuters.com/felix-salmon/2013/04/04/counterparties-richie-havens-here-comes-the-sunlight/comment-page-1/#comment-46566 Fri, 05 Apr 2013 08:52:58 +0000 http://blogs.reuters.com/felix-salmon/?p=21161#comment-46566 Option 2) “Leave the Game”: For most taxpayers, this involves becoming non-resident. For Americans this requires giving up their US citizenship or resident alien status. Generally it means bringing forward the payment of capital gains. This is not necessarily a bad thing for the following reasons a) interest rates are low to borrow money to pay any tax immediately owing on a deemed disposition; b) no longer have any tax liability to your current tax home from this point forward; c) do not have to worry if government decides to increase income, capital gains, gift or estate taxes OR bring in new taxes like mansion or wealth taxes. The major disadvantage is that the individual has to go through a one-time effort to overcome their life inertia. As there are MANY places in the world that the wealthy could move their tax residence which allows them to minimize their future tax payments without compromising their personal or business lifestyle, the future benefits could easily outweigh the one time effort;

Option 3) “Cheat the Game”: In years past, it was cheap and easy to engage in tax evasion. The morally challenged who were considering this option, did not seriously consider that they would ever have to pay the penalty of discovery. However the penalties of executing Option 3, are now real and unattractive.

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