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Bootstrapping overseas as an American

expatsoftware.com

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Re: Bootstrapping overseas as an American

#51

Post by codecamper »

patio11 wrote: post #47
codecamper wrote: post #6

Earlier quoted context omitted.

Interesting! I stand corrected. Next thing I don't understand with that document is what is "earned" income. Are app store sales "earned?" I'd say so... constantly having to update the software -- I'm earning it.

Your profits resulting from sales on the App Store (less such expenses as are reasonable and necessary to achieve that income) are, unquestionably, earned income resulting from your personal contribution to a business. http://www.irs.gov/Individuals/What-is-Earned-Income Most forms of "unearned income" are where you're getting compensated primarily for capital rather than labor. For example, if you were to sell the b…

Yup, it seems that it may be OK for me to claim the Foreign Earned Income Exclusion. Too bad I didn't know about it and stayed too long in the US during 2010-2012. Still... for 2013 and on, I think I can claim it.

Last piece of the puzzle is the tax home. I travel from country to country about every 3 months. Do I even have a tax home?

Re: Bootstrapping overseas as an American

#52

Post by jamra »

jawngee wrote: post #30

I'm doing this in Vietnam. Not necessarily by choice at this point (got married, having a kid, need to stay now). The FEI thing only applies if you are paying taxes in your "host" country. Thankfully, you can minimize the burden in a few different ways. State taxes are another matter though. I was a resident of NYC, but became a resident of Nevada before I left. The visa situation in Vietnam is fucked right now. I wa…

The money you make there must go pretty far though. What do you do for work? Are you Vietnamese or a foreigner? Sorry I'm just curious. I've been out there a few times and was considering bootstrapping a startup out there due to the low cost.

Re: Bootstrapping overseas as an American

#53

Post by getsat »

eloff wrote: post #48

I do this. I actually live in a large, ocean view condo in Panama City. I rent half of it on AirBnB which covers all my fixed expenses other than my mortgage. I work remotely for a Swiss company and I legally pay no taxes. I don't have a degree, and I've only been working since I was 26. I'll be worth half a million before I'm 33, partly because my condo has risen in value. I married a beautiful local girl who probab…

You make less than the FOIC cutoff, I assume? If not, how are you legally not paying US income taxes on foreign-earned income?

Re: Bootstrapping overseas as an American

#54

Post by eloff »

getsat wrote: post #53
eloff wrote: post #48

I do this. I actually live in a large, ocean view condo in Panama City. I rent half of it on AirBnB which covers all my fixed expenses other than my mortgage. I work remotely for a Swiss company and I legally pay no taxes. I don't have a degree, and I've only been working since I was 26. I'll be worth half a million before I'm 33, partly because my condo has risen in value. I married a beautiful local girl who probab…

You make less than the FOIC cutoff, I assume? If not, how are you legally not paying US income taxes on foreign-earned income?

I'm Canadian, Canada is less possessive of its citizens than the US, if you don't have residency in Canada (not the same as just not living there anymore.)

Re: Bootstrapping overseas as an American

#55

Post by seanmcdirmid »

_delirium wrote: post #42
seanmcdirmid wrote: post #10

Earlier quoted context omitted.

Yah, you have to be paying taxes to someone else to take the FEI deduction. Unless you are in a low tax country like Switzerland, Hong Kong, or Singapore, it's just a shortcut in doing your taxes, you don't actually save money since you can always deduct your foreign income taxes if you don't take it.

Kind of an aside, but it's sometimes not even worth doing the shortcut, again unless you're in a very low-tax country. I am eligible for the foreign earned income exclusion but purposely don't take it, and instead take the foreign tax credit, because excluded income is not eligible for IRA contributions [1]. It's entirely excluded, so doesn't count as earned income, and since you can't contribute more to an IRA than…

I don't do FEIE either anymore. It was easy when I made under the limit, but over...is complicated and Chinese taxes are high enough that I still get to write in zero.

Re: Bootstrapping overseas as an American

#56

Post by jawngee »

jamra wrote: post #52
jawngee wrote: post #30

I'm doing this in Vietnam. Not necessarily by choice at this point (got married, having a kid, need to stay now). The FEI thing only applies if you are paying taxes in your "host" country. Thankfully, you can minimize the burden in a few different ways. State taxes are another matter though. I was a resident of NYC, but became a resident of Nevada before I left. The visa situation in Vietnam is fucked right now. I wa…

The money you make there must go pretty far though. What do you do for work? Are you Vietnamese or a foreigner? Sorry I'm just curious. I've been out there a few times and was considering bootstrapping a startup out there due to the low cost.

I do consulting work for clients back in NYC, though not as much as I used to.

The bulk of my time is spent on my video editing app: https://vimeo.com/110889552

Yes, money goes very far here, but you are kind of getting what you pay for. My apartment is nice, but the water if full of arsenic. My internet connection is great, when the underwater AAG cable isn't being attacked by sharks. The food is awesome, until a few hours later when I'm popping pepto like candy.

Sorry, I'm really sour grapes on this place at the moment. The first two years were amazing, but like once you are really living here, the shortcomings of the place become all too apparent.

Re: Bootstrapping overseas as an American

#57

Post by jamra »

jawngee wrote: post #56
jamra wrote: post #52

Earlier quoted context omitted.

The money you make there must go pretty far though. What do you do for work? Are you Vietnamese or a foreigner? Sorry I'm just curious. I've been out there a few times and was considering bootstrapping a startup out there due to the low cost.

I do consulting work for clients back in NYC, though not as much as I used to. The bulk of my time is spent on my video editing app: https://vimeo.com/110889552 Yes, money goes very far here, but you are kind of getting what you pay for. My apartment is nice, but the water if full of arsenic. My internet connection is great, when the underwater AAG cable isn't being attacked by sharks. The food is awesome, until a fe…

You've got good reason to be sour grapes. Hang in there man. I was on the border of moving there for a short time ~1 year for a large project. The project didn't take off quite as expected so now I'm trying to get things done remotely.

After watching the video on your link, I'm a little worried about your health. You sound very sad. Remember you can always take your wife to the states with you. Good luck buddy.

Re: Bootstrapping overseas as an American

#58

Post by anonbanker »

eloff wrote: post #54
getsat wrote: post #53

Earlier quoted context omitted.

You make less than the FOIC cutoff, I assume? If not, how are you legally not paying US income taxes on foreign-earned income?

I'm Canadian, Canada is less possessive of its citizens than the US, if you don't have residency in Canada (not the same as just not living there anymore.)

is there a way to contact you? I'm attempting to assist a canadian expat, and am looking for resources.

Re: Bootstrapping overseas as an American

#59

Post by ZeroFries »

eloff wrote: post #54
getsat wrote: post #53

Earlier quoted context omitted.

You make less than the FOIC cutoff, I assume? If not, how are you legally not paying US income taxes on foreign-earned income?

I'm Canadian, Canada is less possessive of its citizens than the US, if you don't have residency in Canada (not the same as just not living there anymore.)

Also interested in more details. Maybe a Q&A? Could be valuable to others.
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