A painting business owner explains how to use the Foreign Earned Income Exclusion to reduce U.S. taxes. Move to a territorial-tax country like Panama or Nicaragua, spend 330 days outside the U.S., and exclude roughly $120,000 of income. The speaker manages their own business remotely from Nicaragua.
Chapters
Savvy painting business owners want to save big on taxes with some outside-of-the-box tax planning? Here's an advanced tax strategy. If you're the CEO managing salespeople and managing production managers and no longer need to be on the job site, here's a tax strategy. Consider moving to a territorial tax country like Panama, Costa Rica, or Nicaragua. Why? Because of the Foreign Earned Income Exclusion. This amazing tax break allows you to exclude your first $120,000 of earned income from your US taxes. But there are a few requirements. First, you'll need to qualify as a bona fide resident in the foreign country or spend 330 days outside of the US. And the best part, since you're in a territorial tax country like the ones I mentioned before— Panama, Nicaragua, Costa Rica— you'll pay no income tax in, in the foreign country in most cases. Are you worried about supporting your team? No problem. With Zoom meetings and email and CRM software, you can manage your team remotely and stay connected. Don't think it could work? Well, it's definitely possible. I'm doing a close version of that, this right now. I'm here in Nicaragua. So take control of your financial future and create the life and wealth you want. And of course, always check with your tax professional before doing any kind of tax strategy.
