# Bringing profits from America to Australia



## bullstrader (5 June 2014)

Hello,

I'm new to this forum but not new to trading. I have a quick question regarding pulling my money out of a hedge fund in America and bringing it back to Australia. 

I'm wondering how you all get your money back into Australia? Is it the best idea to setup a company and have profits sent to that account? I'm yet to call an accountant and seek advice, I thought I would try my luck in this forum.

Mainly looking at tax issues, Getting taxed as a second income? 

All help would be appreciated.

I look forward to being apart of this forum.

Thank you,

Jp.


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## DeepState (5 June 2014)

bullstrader said:


> Hello,
> 
> I'm new to this forum but not new to trading. I have a quick question regarding pulling my money out of a hedge fund in America and bringing it back to Australia.
> 
> ...




You are pulling profits that will incur income tax?


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## bullstrader (6 June 2014)

DeepState said:


> You are pulling profits that will incur income tax?




It's upto myself to pay tax in Aus once the money has come out of the fund, I'm seeing if I should cop it as a 2nd income or setup a company / business and put the funds through there.


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## DeepState (6 June 2014)

bullstrader said:


> It's upto myself to pay tax in Aus once the money has come out of the fund, I'm seeing if I should cop it as a 2nd income or setup a company / business and put the funds through there.




I am not a tax adviser, this is an opinion only.  You should seek your own tax advice.

Given the investment was in your own name, you will need to account for profits in your own name.  You will not be able to pass the profit through a shell as you would need to sell the investment to the shell at fair value...and this would still crystalise a tax event for you and result in the same outcome (except for transaction costs).

Going forward, depending on your tax rate and other circumstances, you may wish to hold your investments via a family trust.  Further, depending on your tax rate and those of your distribution recipients, you may wish to establish a holding company into which distributions are paid.


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## McLovin (6 June 2014)

DeepState said:


> I am not a tax adviser, this is an opinion only.  You should seek your own tax advice.
> 
> Given the investment was in your own name, you will need to account for profits in your own name.  You will not be able to pass the profit through a shell as you would need to sell the investment to the shell at fair value...and this would still crystalise a tax event for you and result in the same outcome (except for transaction costs).
> 
> Going forward, depending on your tax rate and other circumstances, you may wish to hold your investments via a family trust.  Further, depending on your tax rate and those of your distribution recipients, you may wish to establish a holding company into which distributions are paid.




I agree. Unless the OP was holding the hedge fund account in his name as trustee for the company then he will be paying tax in his name.


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## skyQuake (6 June 2014)

Make a payment from the offshore acct to the aus one and call it a loan 


...Flee country in 5 years when the ato comes for you


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## bullstrader (9 June 2014)

Ok so, I called an accountant and these are my options;

1 - Open a US account and keep the money over there, drip the money into Aus or Keep it in America and use it when I go over.

2 - Open a company / Business and run the money through there, Only thing is that  I can't take a wage  from this, I can only buy assets.

3 - Cop it on the chin and pay the 45% tax.

Due to this being a 2nd income and I already make 6 figures so I think I'm going to have top cop it. Try and get some back when tax time comes around.


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## DeepState (9 June 2014)

bullstrader said:


> Ok so, I called an accountant and these are my options;
> 
> 1 - Open a US account and keep the money over there, drip the money into Aus or Keep it in America and use it when I go over.
> 
> ...




Option 4:

http://www.youtube.com/watch?v=3pl3etLG-ao


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## bullstrader (10 June 2014)

DeepState said:


> Option 4:
> 
> http://www.youtube.com/watch?v=3pl3etLG-ao






Haha, Although prison isn't on the cards for me in the future.


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