Tax Planning & Tax Savings for Overseas Civilian Contractors
First of all, let me start with a huge disclaimer; I am not a tax lawyer or tax accountant. Although I did take a tax class in law school that I did pretty well in. (More on what I did learn in my law school tax class in a little bit.)
Many of you will know me as a Defense Base Act lawyer. I am well known for writing the 5 Star book Win Your Defense Base Act Case. I have one of the two largest Defense Base Act law firms in the world. Meaning, I represent a whole lot of overseas civilian contractors, just like you.
But this article isn’t about the Defense Base Act or how to win your DBA case. It's really about just one major thing: Helping you out. But before I get into helping you out with tax planning and savings let me tell you about why I am here, why I am here helping you out.
First two laws of success
Remember, this is about making you money by tax planning and tax savings. If you are reading this, you are probably an overseas civilian contractor and you want to know how you can put more cash into your family’s pocket every year. And if you aren’t interested in that, then I certainly hope you are by the time you're finished reading this article.
Let’s talk first about two of the laws of success:
1. Your true worth is determined by how much more you give in value than you take in payment.
2. Your income is determined by how many people you serve and how well you serve them.
Here is how I think of it: you are serving me or have served me in the past. You, as overseas civilian contractor, protect my freedom every day, so my kids and I can enjoy living our lives with liberty and justice.
In return, I want to serve you. I understand the first two laws of success very well. I am successful because I follow these two laws.
I don’t think it's an accident that I found "the wise man on the top of the mountain," so to speak. I think it was because I have continuously tried to help people as many people as I can who are dealing with the DBA and insurance issues that I found someone else that is trying to live those same values. Don't forget those two rules of success: "give more than you take and the more you serve the more you will receive."
I have one of the two largest Defense Base Act law firms in the world that represents seriously injured overseas contractors. Running into an accountant that specializes in tax planning & tax savings for overseas civilian contractors can't be just a coincidence.
I don’t think so.
We were put together by a mutual friend that spreads the gospel of these two laws of success on a daily basis. And as a result this accountant, Bob Hall, is one of the most successful people I know.
Tax Strategies for Overseas Civilian Contractors
If you skipped over the previous section, just to get to this “what’s in it for me” section, I urge you to go back and figure out how I got here. It might help you out more than you think. But let's go on to these tax strategies:
Rule 1: Understanding the Rules.
Here is something that I did learn from tax class in law school.
A few quotes from Judge Learned Hand:
“Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes.”
Gregory v. Helvering, 69 F.2d 809, 810 (2d Cir. 1934)
“Over and over again courts have said that there is nothing sinister in so arranging one's affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.”
Commissioner v. Newman, 159 F.2d 848, 851 (2d Cir. 1947) - Dissenting opinion
Most of you are probably 35 to 55 years old. Some younger, some older. Just like pro-athletes, you have a limited time you can go overseas and make good money as an overseas civilian contractor.
"You have to make hay while the sun shines," so to speak. If your overseas civilian contracting career is cut short by an injury you had overseas, than this is where my law firm comes in. Our job is to get you the most money you can for your Defense Base Act injury.
But in the meantime, you need to make as much money as possible and pay as little taxes a possible, just as Judge Learned Hand said.
Rule 2: Finding the person that understands the rules and will help you make a lot of money.
If you are a seriously injured overseas, the first thing you need to do is get a FREE copy of my book, Win Your Defense Base Act Case. It explains the rules and teaches you how to find that DBA lawyer that is honest, understands these DBA rules and will get you and your family the most money as possible because you can’t go back to working overseas as a civilian contractor.
It’s the same for tax planning and tax strategies for overseas civilian contractors. You need to understand the rules. And you need to find yourself an expert on the rules to guide you through the steps so you save and get the most money you can.
With that in mind, as soon as you finish this article, you should call Robert Hall of Robert Hall and Associates in Glendale, California. Just Google “Robert Hall taxes” and you'll find him. And when you meet him, make sure you call him Bob. Everyone does.
When you meet Bob you are going to get the chance to meet a real "one of a kind" guy that lives those two laws of success I mentioned earlier. In other words, you are going to get much more from Bob than what you paid him. I can personally guarantee you won't be disappointed.
Rule 3: As an overseas civilian contractor you need to incorporate yourself.
Here is part of what Bob will tell you:
First, if you are going to be working overseas as a civilian contractor, you need to incorporate yourself. Not to steal a Nike quote but, “Just do it.” Bob will explain how and why.
Another word of advice Bob would probably give you: Don’t incorporate with one of those Internet “we do it for you outfits for cheap.” It’s worth just a very little extra to have it done right. You don't want a person who never sailed before acting as captain of a ship you're spending weeks on, right? Same with DBA law and same with overseas contractor taxes.
Rule 4: You need to create a home office, so you can legitimately deduct a lot of your home expenses as part of being an overseas civilian contractor.
You need to be able to legitimately “write off” as much of your home office expenses as possible. You can only do this by creating a legitimate home office in your home. You have to follow the rules on this one if you want to save you and you family lots of cash.
Rule 5: You need to establish your home office in a state with no state income tax.
I know, you’re going to think that since Bob Hall and I both have our main offices in California, that we aren't "the sharpest tools in the shed" for putting this out there. But, not so fast. I am in California, because so many of my clients are in California. San Diego has one of the largest military populations on the West Coast. But I also live in San Diego because of the beach and the weather let's face it, that's tough to beat and we pay the price for it here.
But, Bob Hall also has a Las Vegas office and lives in Nevada.
Do you think it’s coincidence that Bob, a lead tax consultant, owns a home in a state with no state income tax?
I don't think so.
So, Bob is going to tell you to move your home and your company’s home office to a state with no state income tax because he knows, firsthand, that it saves you money. Plain and simple.
Rule 6: Follow the laws of success
Go back to the first two rules of success. If you live, truly live, by those rules, success will find you.
But the first thing you need to do is call Bob Hall. The second thing you need to do is everything that Bob tells you to do. And the third and final thing you need to do is pay it forward and tell every other overseas civilian contractor you know about this article, the 2 laws of success and Bob Hall.
You're probably thinking or have been thinking this whole time, why am I telling you all of this about Bob Hall? You're thinking that I am doing this as a service to him, right? He's paying me to say all these nice things, right?
No. I'm not a walking advertisement. And I can assure you that Bob has no idea I've written this article. He'd probably stop me if he did.
So why am I tell you this about Bob Hall? Because I truly do live these two laws of success that I told you about. I want to give more than I receive and serve as many people as possible. I make myself at your service so that you can support your families and your lives."
And maybe one day you can "pay it forward" and do something that helps others or educate your co-workers and friends so they can benefit too.
Contact Bob Hall:
Robert Hall and Associates
300 West Glenoaks Blvd., #200
Glendale, CA 91202
Phone Number: 818-242-4888
Email: [email protected]