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What am I responsible to pay

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geo_5050

Guest
I am helping an individual transfer his personal assets from Amsterdam to the United States. He is compensating me a portion of his assets. My question is, what percentage of the money I am being paid do I pay tax on? Does it depend upon the amount I am being compensated? The amount I am being compensated is a fairly large sum of money. Thank you.
 


crager34

Member
According to the law...looks like 0%:

In the case of Lucas v. Earl, [1930] 281 U.S. 111, the U.S. Supreme Court stated unambiguously that:

"The claim that salaries, wages and compensation for personal services are to be taxed as an entirety and therefore must be returned by the individual who has performed the services which produced the gain is without support either in the language of the Act or in the decisions of the courts construing it. Not only this, but it is directly opposed to provisions of the Act and to regulations of the U.S. Treasury Dept. which either prescribe or permit that compensation for personal services be not taxed as an entirety and be not returned by the individual performing the services. It is to be noted that by the language of the Act it is not salaries, wages or compensation for personal services that are to be included in gross income. That which is to be included is gains, profits and income DERIVED from salaries, wages or compensation for personal service." [Emphasis added]

The Court ruled similarly in Goodrich v. Edwards, [1921] 255 U.S. 527 and in 1969, the Court ruled in Conner v. U.S., 303 F.Supp. 1187, that:

"Whatever may constitute income, therefore must have the essential feature of gain to the recipient. This was true when the 16th Amendment became effective, it was true at the time of Eisner v. Macomber, supra, it was true under sect. 22(a) of the Internal Revenue Code of 1938, and it is likewise true under sect. 61(a) of the I.R.S. Code of 1954. If there is not gain, there is not income .... Congress has taxed INCOME and not compensation."




 
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loku

Guest
Transfer of assets from Amsterdam

WARNING!!!! Please ignore the message from Crager34. His or her advise is contrary to the law and no tax professional would agree with it. Crager34 has shown in many past comments that he or she does not know how to properly interpret the law.

If you are a resident of the US, then you are obliged to report the total amount of your compensation as income subject to tax. You can deduct any expenses you incur from that total.
 

crager34

Member
Contrary to what law? Show it to us loku and stop hiding behind your licence.

In referrence to law....If it looks like a duck, smells like a duck, and walks like a duck...IT HAS TO BE A DUCK, OR IT'S VOID FOR VAGUENESS.

>no tax professional would agree with it.< You don't get out much. The congressman who is introducing this constitutional amendment: H.J. Res. 45 - The Liberty Amendment, would probably disagree.
 
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Taxguy

Guest
>>Contrary to what law? Show it to us loku and stop hiding behind your licence<<

CRAGER34,.....you're still a goof, and a dangerous one. I don't know why the WebSite Manager hasn't locked you out of here. I would.

You have no idea of what the tax law is, and continue to deliberatly confuse folks for your own amusement and in furtherance of your own goofy agenda.
 

crager34

Member
>I don't know why the WebSite Manager hasn't locked you out of here. I would.<

Because my opinion differs from yours, you think I should be shut out of here? What country do you live in anyway? You and loku may not think I am right, but you haven't gone very far to prove it either. Other than call me names and tell me all about your years & years of experience.

Here is an idea. Why don't you two let the folks asking the questions decide who they want to believe and leave the name calling to the adolescents.


 
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Taxguy

Guest
>>Because my opinion differs from yours, you think I should be shut out of here? <<

No,....I think you ought to be shut out because you are a GOOF and a Tax Protestor with a political agenda which has nothing to do with the practice of Tax Law.
 

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