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The state of trader taxation
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AT-October 2006-1
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Online traders are free to work in any state or country, which allows them to avoid high-tax jurisdictions in favor of more tax-friendly areas. However, there are many nuances to the tax code that could make this more difficult than you think.
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Detailed Description
Many taxpayers in high-taxing jurisdictions California, New York, and Massachusetts in the U.S.; Germany, Sweden, and France in Europe, among other places dream of living and working in a tax free haven.
Unfortunately, most taxpayers are glued to their hometowns, or they are corporate warriors forced to globetrot around the world at the whim of their bosses.
Online traders have much more flexibility in choosing friendly tax jurisdictions. As long as there are adequate broadband connections and mobile telecommunications, traders can call any place a working home.
However, while taking your laptop and cell phone on the road is easy, it s much more difficult to transport your tax domain.
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