The Treasure HunterA: Yes, I do, and the tax laws for trading and investing are
complicated in and of themselves just here in the United States.
Q: They get infinitely more complicated when you go overseas?
A: It can get more complicated overseas. There’s some planning
that you can do for the U.S. stuff. Try and find someone who
specializes in accounting for traders. Don’t go to HR Block and
don’t go to some generic accounting firm that might be great in
the basics but they don’t know how to do taxes for traders. You are
also going to have to delineate your trading between what’s your
real active stuff that you’re doing versus what is you more passive
investment activity. Then, when you go overseas, it’s hard enough
just to learn our tax system—to try and learn the foreign ones are
almost impossible. So my advice to you is that your best bet is
to try and take advantage of double-tax treaties. I talk to experts
who structure my investments in these countries by either using
America’s double-tax agreements or they will set up our business in
a country that has a double-tax agreement in the country that I’m
going to be investing in. It just simplifies everything and keeps it all
governed here. I would urge people to really get with a professional
because the laws are complex, they’re always changing, and if you
make a mistake, any amateur auditor from the IRS will get your
records. I mean it’s all on paper. It’s very easy to go through your
records see what you did wrong and even if you did it wrong
honestly, you’re going to be looking at higher taxes, penalties,
interest, and things you don’t want.
Q: Okay Indi we’ve been at this for a while and it’s getting time
for lunch. How would you summarize the most important parts of
this interview? Please feel free to add anything we may not have
covered.
A: Gordon Gekko said that lunch is for wimps [laughter]. All
traders are different, but we can find some common ground. First,
I will start at the beginning. Every great trader who I have ever