Laid off people turned Ex-Pats Living on the CHEAP?

[Witold]

Originally Posted by eakins

no doubt all what you say is true and valid, however mexico is a cash society all the way around, taxing and income reporting is marginal at best, safe sales are prevalent, security is prison like (bars everywhere) and most living in mexico are escaping any thing related to the US.

from the conversations i've had, most all self employed work in mexico is cash in pocket, cash out for bills and no questions asked. take that how you want.

If someone is making small money each month and spending it all on life each month, then yeah, it's easy not to declare it. But it also means that person is living hand-to-mouth existence... That's not as great as it sounds if someone is concerned about their future and safety net. My response is meant for people who have decent jobs abroad where they can save some decent income for a rainy day.

That savings is usually going in a bank, and USA government knows about these accounts. If you have more than 10K in those accounts, you have to declare those accounts to the IRS and if you fail to declare, you are facing civil or criminal charges - or both. And penalties and fines can end up exceeding the balance of your undeclared foreign account. (IRS source)

People have been avoiding IRS in many ways over the years. A lot of things work - or have worked. In early 90s, I remember that a lot of people in some urban neighborhoods would either not file, or file and lie about their deductions. It worked great for a while. Everyone knew that IRS couldn't really track this stuff very well. But each year, their systems are becoming better and better, and their tracking is better and better. They are working pretty hard to collect as much revenue as they can and they are only getting stricter. Just because something flies under the radar today, doesn't mean it will fly under the radar in 3 years and one might be facing stiff fines and penalties for what used to be a common expat strategy when IRS runs some new cross-checks or get access to some new source of data.

It is easy for poor people to avoid taxes.

It is easy for rich people to avid taxes.

For everyone else in between, they are better off not risking it.

[Brunssd]

Originally Posted by Witold

People have been avoiding IRS in many ways over the years. A lot of things work - or have worked. In early 90s, I remember that a lot of people in some urban neighborhoods would either not file, or file and lie about their deductions. It worked great for a while. Everyone knew that IRS couldn't really track this stuff very well. But each year, their systems are becoming better and better, and their tracking is better and better. They are working pretty hard to collect as much revenue as they can and they are only getting stricter. Just because something flies under the radar today, doesn't mean it will fly under the radar in 3 years and one might be facing stiff fines and penalties for what used to be a common expat strategy when IRS runs some new cross-checks or get access to some new source of data.

It is easy for poor people to avoid taxes.

It is easy for rich people to avid taxes.

For everyone else in between, they are better off not risking it.

The only thing to disagree with here is that given the IRS trending enforcement patterns, the poor (especially EITC recipients) have a much harder time avoiding audit and the resulting penalties and taxes than the rich. Being poor is becoming a criminal act in the US, especially working poor.

[satz]

In 04 i brought a townhouse on a beech in southern india - madras... i am from madras originially ,it was my escape plan in case i got laid off and had nothing to do is US and run out of money. The IT companies in India where hiring like crazy at that time or find something to do .I was single and the economy was in the dumpster .

anyway , right now i live in Mass an hr south of boston. have a house and have 2 little kids and wife
will i ever use the townhouse i will never know but i have some family members [i am originally from india] use is sporadically but its still there '

satz

[woc4]

Originally Posted by GlennR

There are folks who don't ride motorcycles who lurk around here dreaming about riding. Most of us here ride, but never go too far from home, but we love to read and dream about the far away rides and exotic places.

So, you don't think it's safe for me to dream about boats?


We can't worry about the want-to-be bikers getting run over by a dump truck, or riding off a cliff. Don't worry about folks who want to go for a big boat ride. Folks are going to live and folks are going to die.

Glennr I bought a 30 ft boat on my 68 birthday and sailed by myself from tampa to Tallahassee, my prior knowledge about sailing was from the 60s the boat is still in the dock and i sailed her a couple of times. Now a week ago i got myself a swing after more than 10 years of not riding a bike (it was an old gwing ) So making it short and nicewhenever ou like to sail with me on the gulf you are welcome. Wat im trying to say here is its better to do it and notgoing through life thinking why i didnt do it.

[GlennR]

Originally Posted by woc4

Glennr I bought a 30 ft boat on my 68 birthday and sailed by myself from tampa to Tallahassee, my prior knowledge about sailing was from the 60s the boat is still in the dock and i sailed her a couple of times. Now a week ago i got myself a swing after more than 10 years of not riding a bike (it was an old gwing ) So making it short and nicewhenever ou like to sail with me on the gulf you are welcome. Wat im trying to say here is its better to do it and notgoing through life thinking why i didnt do it.

That's great you got a sailboat and now a bike again. I'd like to take you up on the offer, but these days I have a hard enough time getting away for a few hours to ride the trails on my bike. The wife would be unbearable if I took off to the gulf for a boat ride.
I'm still trying to get along with her.....

[dirtrulz]

Originally Posted by SCExpat

Well what some have done is to build up their credit card limit high enough to pay off their student loans and then when/if things get tough......you have a loan that CAN be discharged through BK. Then you would not have to worry about what little, if any, of your SS check would be kept to pay the student loans. I believe way back in this thread there was someone who built up their credit to the point they bought a house in Mexico on their Visa and then just left to live there debt free so to say.

You have to love this country. Take on a bunch of debt promising to pay it back and then figure out a way to screw them and not have to pay it back. There are no morals here any more. People walking away from houses, even though they can make the payments, because they are upside down. Whos fault was it they bought the overpriced house in the first place. To me if you make a promise you should do everything in your power to go through with that promise.

If you borrowed a bunch of money for school and got a useless degree it is no body's fault but your own. Be a man and pay them back, dont look for ways to weasel out of it because you made a stupid decision.

[GlennR]

Originally Posted by dirtrulz

You have to love this country. Take on a bunch of debt promising to pay it back and then figure out a way to screw them and not have to pay it back. There are no morals here any more. People walking away from houses, even though they can make the payments, because they are upside down. Whos fault was it they bought the overpriced house in the first place. To me if you make a promise you should do everything in your power to go through with that promise.

If you borrowed a bunch of money for school and got a useless degree it is no body's fault but your own. Be a man and pay them back, dont look for ways to weasel out of it because you made a stupid decision.

I agree with paying off your debt.

But, it is a shame that college costs keep rising & rising in the US. Seems like "if they're so smart" colleges could figure out how to keep costs down!
I also feel like educational loans should be offered directly from the Fed at the prime rate and avoid the bank profits. Education is should be considered an investment in economic development, and the government seems to look for ways to promote that all the time.

IMO banks are parasites....

[ben2go]

We were fine and then all this crap with the economy happened.All of our credit accounts minimum payment doubled and all of our utilities hiked rates a good bit.Then I lost my job due to my health.We are struggling while we await the outcome of my legal suite.Good thing is we own our property and vehicles free and clear.

[Patrick46]

Originally Posted by GlennR

I feel like educational loans should be offered directly from the Fed at the prime rate and avoid the bank profits. Education is should be considered an investment in economic development, and the government seems to look for ways to promote that all the time.

Absolutely the most wonderful idea I ever heard of!!!



GlennR for President???

[MikeB]

I feel like educational loans should be offered directly from the Fed at the prime rate and avoid the bank profits. Education is should be considered an investment in economic development, and the government seems to look for ways to promote that all the time.

Oh! Oh! Socialist commie pinko heresy! Next thing you know someone will suggest that every citizen of the richest country in the world should get basic health care. You want to be like Sweden?

Hey....wait a minute.....Sweden has one the most successful economies and healthiest, happiest populations in the world. OK, maybe we can bring them down to our level so we won't feel so bad.

[RTLover]

Originally Posted by MikeB

Oh! Oh! Socialist commie pinko heresy! Next thing you know someone will suggest that every citizen of the richest country in the world should get basic health care. You want to be like Sweden?

Hey....wait a minute.....Sweden has one the most successful economies and healthiest, happiest populations in the world. OK, maybe we can bring them down to our level so we won't feel so bad.

Having a populous that has general agreement on the major issues goes a long way toward its successes.

[MikeB]

Having a populous that has general agreement on the major issues goes a long way toward its successes.

So it's fortunate for them that there is a general agreement that every citizen ought to have the opportunity to be healthy and well educated. That's not a difficult consensus to sell.

[Patrick46]

Originally Posted by MikeB

So it's fortunate for them that there is a general agreement that every citizen ought to have the opportunity to be healthy and well educated. That's not a difficult consensus to sell.

Wanna bet???


if not so, then why ain't we got it here???

(it's OK....no need to answer)

[eakins]

Originally Posted by GlennR

I agree with paying off your debt.

But, it is a shame that college costs keep rising & rising in the US. Seems like "if they're so smart" colleges could figure out how to keep costs down!
I also feel like educational loans should be offered directly from the Fed at the prime rate and avoid the bank profits. Education is should be considered an investment in economic development, and the government seems to look for ways to promote that all the time.

IMO banks are parasites....

They're all in it for the buck only. You need to think just as cold hearted as they do. Banks will default if it's beneficial for them but for the average person that is seen as immoral.

As for many colleges and universities, like banks they are in the biz of teaching to make $.

[eakins]

I meet 1 guy who worked on boats motors in mex. he made approx 60k yr. all his transactions were cash sales. all his income was stored in a safe. he would not say where nor where he lived for obvious reasons. all his bills paid for cash.

I meet 2 other people who ran biz in mex. would not say what they made, but everything was cash in hand, cash in a safe.

These people were not poor by any means. In fact the opposite by local standards.

Originally Posted by Witold

If someone is making small money each month and spending it all on life each month, then yeah, it's easy not to declare it. But it also means that person is living hand-to-mouth existence... That's not as great as it sounds if someone is concerned about their future and safety net. My response is meant for people who have decent jobs abroad where they can save some decent income for a rainy day.

That savings is usually going in a bank, and USA government knows about these accounts. If you have more than 10K in those accounts, you have to declare those accounts to the IRS and if you fail to declare, you are facing civil or criminal charges - or both. And penalties and fines can end up exceeding the balance of your undeclared foreign account. (IRS source)

People have been avoiding IRS in many ways over the years. A lot of things work - or have worked. In early 90s, I remember that a lot of people in some urban neighborhoods would either not file, or file and lie about their deductions. It worked great for a while. Everyone knew that IRS couldn't really track this stuff very well. But each year, their systems are becoming better and better, and their tracking is better and better. They are working pretty hard to collect as much revenue as they can and they are only getting stricter. Just because something flies under the radar today, doesn't mean it will fly under the radar in 3 years and one might be facing stiff fines and penalties for what used to be a common expat strategy when IRS runs some new cross-checks or get access to some new source of data.

It is easy for poor people to avoid taxes.

It is easy for rich people to avid taxes.

For everyone else in between, they are better off not risking it.