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Justin76

Justin76

Awesome Friend
Neighbor
Joined
Dec 13, 2017
Messages
497
Location
Hong Kong wishing I was in Michigan
As many here know, my family and I will be leaving this place in the next 8 months to a year. (finally!!)
After working here for over 12 years, my MPF (mandatory provident fund) has done pretty well and I'll be leaving with a decent chunk of cash in hand. Under $100k but still a good chunk of money.

Now, taxes, I had to get an accountant last year because of taxes for US and HK were to much for me to deal with. etc.etc...(thanks obama for FATCA) He says just claim it each year for your taxes or invest in something stateside, or into a retirement fund. I don't trust bakers with my money so investing is out of the question.

Granted it's not a huge chunk of money but, I don't want to keep paying taxes on it while it sits in a bank.
What do I do with this cash? If I transfer to my US account, then I need to pay taxes, if I keep it in my HK account I need to claim it for US taxes.
Should I just use it and put it to work on our property? This is the most logical for me, invest in the property and up the value, while keeping a good chunk for emergencies and fall back.

"Gift" it to my wife and have her keep it in her account? This seems like a real option, that's how we bought our property in the US. Complicated, seems a bit shady, but legal.
She isn't getting a immigrant visa/green card right away because of family business in China and family inheritance issues that need to be sorted out first. So no need for her to report taxes to the US.

Not looking on advice to dodge taxes, but after 12 years of paying 12% for taxes ,
the thought of paying close to 25-30% is terrifying.
It's my money, I worked hard for it I would like to keep as much of it as possible.

Or should I just go ghetto rich and blow it on an Escalade, rims and gold teeth??
 
There many legal way to invest you funds. First and foremost, consult a tax specialist, do not, repeat do not follow my advice, suggestion regarding a tax avoidance project. One person I knew had a tax problem and decided to start a Christmas Tree farm. It take about 7 years for the first planting to become market viable. During that time he was writing an awful lot off for improvement to the property. He planted the trees so they formed a very solid wall around his property. At some point he decided teh market was not right for a Christmas tree farm and closed it down. The business ended but the trees are still there. Looks great. The point is there are a lot of legal ways to minimize your taxes. There is no requirement to pay more taxes than you absolutely need to pay. There are fortune 500 companies that pay little or NO corporate taxes.
 
This money will be my "living"money for a few weeks, on top of my regular savings.
I plan on having work lined up before I do the full move. But other than that once insurance, car and health, basic necessities are covered, there will still be a decent chunk just sitting there. I still have Hong Kong permanent residency, so on trips back over here, basic medical things I will get taken care of.

The vehicle is getting covered this trip next month with my personal savings and not this MPF money.
A business did cross my mind, but one thing I learned in Hong Kong is NEVER use your own money to open a business!
Unless its something small that is sustainable over a period of time.


I feel it's your American duty to pay as little taxes as possible, it is the reason that our great country got independence from England (one of them) ....and now we pay a crapton of taxes....ironic isn't it?

Growing up without a lot of money, and now having a decent amount sitting there, it makes me nervous....
I would like to put it to work.

Im thinking, new steel roof for the house, that will up the value quite a bit. Finish off the basement, some outbuildings like a sauna, root cellar etc. I would like to see if the guy who owns the property behind us will sell us 5 acres adjoining ours.
The remainder just put into an emergency account and hold on to it...
 
I would think on some land, Precious metals, firearms, ammunition and would probably make sure I kept the majority of in savings.

But the things you listed like roof, root cellar and outbuildings are great ideas to. I would recommend to keep a large portion of that 50% as an emergency fund...just in case! We keep a sizable amount in the bank but never over what is covered by FDIC, we also keep cash on hand...just in case!
 
Homesteader33 said:
I would think on some land, Precious metals, firearms, ammunition and would probably make sure I kept the majority of in savings.

But the things you listed like roof, root cellar and outbuildings are great ideas to. I would recommend to keep a large portion of that 50% as an emergency fund...just in case! We keep a sizable amount in the bank but never over what is covered by FDIC, we also keep cash on hand...just in case!
Click to expand...


Precious metals...man...If wishes were horses!
In the 90's when I was in the Navy we went to the UAE many times and the gold souk was selling stuff at $280-300 an ounce...Now what is it? $1200? My LPO was telling all of us to buy gold, and as much as we could afford, and hold on to it. He must have spent $3 or 4k on just gold chains, bracelets, little gold bars, and all that. And in Dubai its all 18~22 carat stuff!
That dude must be sitting on a good chunk of money right now!
21 years old and more worried about chasing women and beer!!
 
I'd go for the gold teeth also. You can always yank them out and barter them if need be!


img26.gif

NOT!! LOL!!
 
Justin76 said:
yea our new neighbor told me they come through every few years, last few with a drone...looks like its going to be drone hunting season if I catch one over my property without my permission.

Dont see how a new roof can be taxable, it's an improvement and necessary maintenance on the house.
Click to expand...
If the roof adds value to your home then your property tax could go up.
 
Yea makes sense, im going to have to make friends with the township tax assessor.
That how those small town things work anyways.
I paid our winter taxes a few weeks ago, $600USD, not to bad, but, they are going to hate me in the township meetings.

$78 school debt tax, $25 recycle tax, $41 commission on aging tax, $43 jail debt tax....but veterans only get $1.95? and what the hell is TBA ISD tax that is $145?

Going to have to have another talk with our accountant, thing is he is just a tax guy and not a financial guy. He can help me avoid paying through the nose for US and HK taxes but state and local tax isnt his thing.
 
If I were attempting to minimize the debt bite on a good chunk of money, I'd probably invest in an hour or two of advice from a reputable tax attorney or advisor. Yeah, I know what they say about attorneys - but this may be one of those special circumstance when you want one on your side.
 
Justin76 said:
Yea makes sense, im going to have to make friends with the township tax assessor.
That how those small town things work anyways.
I paid our winter taxes a few weeks ago, $600USD, not to bad, but, they are going to hate me in the township meetings.

$78 school debt tax, $25 recycle tax, $41 commission on aging tax, $43 jail debt tax....but veterans only get $1.95? and what the hell is TBA ISD tax that is $145?

Going to have to have another talk with our accountant, thing is he is just a tax guy and not a financial guy. He can help me avoid paying through the nose for US and HK taxes but state and local tax isnt his thing.
Click to expand...

TBA = I don't know!
ISD = 'Independent School District' on most taxes.
tbaisd(dot)org is Traverse City School board...a quick google search pointed me to them...folks(I was going to say much worse but refrained).

Edit-Guess I know what part of the mitt you live in!
 
Thank you all for the advice,
fteter:
Tax attorney is going to be lined up I think on this trip home.
Over here they charge to much. Our tax accountant cost me $600 this year just to do my taxes! Last year he was $2000! (that was to un mess the mess of 12 years)
Homesteader33:
Traverse city is 30~40 min north of us and a seperate county...dont know why going to go ask about that as well.
Traverse is a great little town but can get a bit hippie liberal due to the Colorado/ west coast idiots discovering that area.
Leelanau county and all the vinyards. That and the fishing in the summer.
Hunting in the fall, spring time steelhead fishing.
Attracts all the the apple knockers and fudgies.

Thank you for the research! Im going to raise a little trouble over that.

My mother in law is suggesting much the same as everyone else here.
In fact she is the one that brought this up. Out of concern for my wife and son mostly, they both have significant assets in their name as gifts and inheritance and company assets. So tax attorney it is.


Im just the trophy husband....that was tasked to sort out in-law family worries...
 
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Justin76 said:
As many here know, my family and I will be leaving this place in the next 8 months to a year. (finally!!)
After working here for over 12 years, my MPF (mandatory provident fund) has done pretty well and I'll be leaving with a decent chunk of cash in hand. Under $100k but still a good chunk of money.

Now, taxes, I had to get an accountant last year because of taxes for US and HK were to much for me to deal with. etc.etc...(thanks obama for FATCA) He says just claim it each year for your taxes or invest in something stateside, or into a retirement fund. I don't trust bakers with my money so investing is out of the question.

Granted it's not a huge chunk of money but, I don't want to keep paying taxes on it while it sits in a bank.
What do I do with this cash? If I transfer to my US account, then I need to pay taxes, if I keep it in my HK account I need to claim it for US taxes.
Should I just use it and put it to work on our property? This is the most logical for me, invest in the property and up the value, while keeping a good chunk for emergencies and fall back.

"Gift" it to my wife and have her keep it in her account? This seems like a real option, that's how we bought our property in the US. Complicated, seems a bit shady, but legal.
She isn't getting a immigrant visa/green card right away because of family business in China and family inheritance issues that need to be sorted out first. So no need for her to report taxes to the US.

Not looking on advice to dodge taxes, but after 12 years of paying 12% for taxes ,
the thought of paying close to 25-30% is terrifying.
It's my money, I worked hard for it I would like to keep as much of it as possible.

Or should I just go ghetto rich and blow it on an Escalade, rims and gold teeth??
Click to expand...


Tax exempt bonds, and raw land with development potention 10 - 15 years down the line (think in terms of "where is this city going to be expanding 10 - 15 years down the line").
 
Hypothetically, because its illegal.......Cash out accounts and buy diamonds, gold and other jewelry then take a boat over :). Gold coins is what you can probably sell here for the same you paid for over there. You won't get even money back on diamonds and jewelry. Less gold is easier to transport than more silver. There are cruise ships that go from Hong Kong to the west coast. Or transfer your accounts to the Caymans and take a Carribean cruise when you get back. If your not trying to hide a large sum that would work in a hypothetical scenario. When you get back start a home based cash business. Like in home massage. Report just enough to avoid taxes.
 
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Years ago, a friend sent me a pearl necklace from Hong Kong, it was beautiful, not like the quality here in the US.
There may be items you might want to bring back from Hong Kong that you can't get in the US. I hear that HK has the best quality items in the world.
 
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