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i know maybe this is a weird question but i need to know
I live in Belgium and my broker is based in the US.
Mbtrading.
Do i have to pay taxes in the US then?
thanks in advance!
Can you help answer these questions from other members on NexusFi?
I thought we could use a thread devoted to Taxes. This is all things taxes regarding trading.
One example, Advantages/disadvantages for different situations (equities, futures, forex, etc) as well as benefits of filing sole-proprietor vs LLC or as a …
You won't pay taxes in the US, but in Belgium your profits will be calculated as a capital gain (not an income).
In Belgium, the rate is pretty high: 33% of all your profits. The problem you will have is that it is taxed on a yearly basis with no loopback:
So if you make 1m$ in 2016, you pay 330k$.
Then in 2017 you lose 1m$.
Then in 2018 you make 1m$, you will need to pay 33% of that 1m$ again, despite losing 1m$ in 2017.
In that scenario, you'd have paid 660k$ in taxes and made only, net, 340k$ instead of 1m$, over the 3 years. This is why you should consider investing through a fund vehicle or off-shore trust, this way you would only pay taxes when you take the money out of the fund / trust. In this case you'd pay 33% on 1m$ with a trust.
Yes. In the UK Futures is considered capital gain taxes, and will tax you either 18% or 28% depending on whether you're a basic rate taxpayer or not.
Same thing, if you go through a jersey trust you will only be taxed that amount when you take the money out of the trading account, this way you don't get killed by your losses.
If you've been in london for less than 7 years, then you can be Non-Dom and this doesn't apply if your broker is outside of the UK - you'd be taxed 0% unless you bring some of that money back to a UK bank account.
