The Tax Thread - Traders Hideout | futures io social day trading
futures io futures trading


The Tax Thread
Updated: Views / Replies:40,657 / 222
Created: by Big Mike Attachments:3

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 3  
 
Thread Tools Search this Thread
 

The Tax Thread

  #21 (permalink)
Elite Member
Toronto, Ontario
 
Futures Experience: Advanced
Platform: NinjaTrader, Multicharts
Broker/Data: IB, IQfeed
Favorite Futures: ES, CL
 
Snoop's Avatar
 
Posts: 203 since Oct 2009
Thanks: 135 given, 161 received

Futures trading (or any day trading that is your primary business) is treated as an income activity by CRA, so capital gains and superficial rule do not apply.


Dan08 View Post
I am referring to The Superficial Loss rule for buying back "identical property" within 30 days of the loss. The Canadian Revenue Agency says any identical property purchased within 30 days of the loss would make it a superficial loss opposed to a capital loss. The CRA website also states that Future contracts for the same commodity with the same delivery month are considered Identical Property.

So basically my question is, I can not just show a full 1 year total loss statement to my accountant? I will have to sniff out superficial losses since I day trade and most likely took a trade before the 30 day period after a loss? Any suggestions would be great.


Reply With Quote
The following user says Thank You to Snoop for this post:
 
  #22 (permalink)
Just starting out...
Canada
 
Futures Experience: Beginner
Platform: NT
 
Posts: 6 since Dec 2010
Thanks: 0 given, 1 received

Snoop, even if I have not registered a business or a LLC and have a full time job, I will have to report my futures day trading as a regular business income? So my total losses for the year would be shown then I assume?

I'am still obviously going to talk to my accountant next year around time for filing, but just trying to learn a little on my own before hand, thanks.

Reply With Quote
 
  #23 (permalink)
Just starting out...
Canada
 
Futures Experience: Beginner
Platform: NT
 
Posts: 6 since Dec 2010
Thanks: 0 given, 1 received



Snoop View Post
Futures trading (or any day trading that is your primary business) is treated as an income activity by CRA, so capital gains and superficial rule do not apply.

I recently asked the CRA and the agent said it would be fine to report my losses as a capital loss? He also said its ok to ignore the superficial loss rule as long as all my losses are not just bunched up near the year end which he said a lot of traders do.

Should I go with this information as being correct? First year trader so I am still puzzled on which method to go with.

Reply With Quote
 
  #24 (permalink)
Elite Member
Toronto, Ontario
 
Futures Experience: Advanced
Platform: NinjaTrader, Multicharts
Broker/Data: IB, IQfeed
Favorite Futures: ES, CL
 
Snoop's Avatar
 
Posts: 203 since Oct 2009
Thanks: 135 given, 161 received

Go with the guidance that CRA provided you (hopefully you took their name), and mention it to your accountant if you use one.

Not surprising that there is conflicting info with the CRA regarding futures. The interpretation bulletin for fututres was last updated in 1978.


Dan08 View Post
I recently asked the CRA and the agent said it would be fine to report my losses as a capital loss? He also said its ok to ignore the superficial loss rule as long as all my losses are not just bunched up near the year end which he said a lot of traders do.

Should I go with this information as being correct? First year trader so I am still puzzled on which method to go with.


Reply With Quote
 
  #25 (permalink)
Just starting out...
Canada
 
Futures Experience: Beginner
Platform: NT
 
Posts: 6 since Dec 2010
Thanks: 0 given, 1 received

I took the gentlemans name from the CRA, but I plan to call them up again next year sometime in January to ask one more time to be on the safe side. If I get the same response I will go ahead and use the capital loss, if I get a different answer I am going to have to go into the CRA office I think and talk to them in person about this to make sure I get the correct answer.

Reply With Quote
 
  #26 (permalink)
Elite Member
Big City, MA
 
Futures Experience: Intermediate
Platform: AMP Ninjatrader
Favorite Futures: ES, CL, NQ, TF
 
Posts: 79 since Nov 2010
Thanks: 3 given, 16 received

IRS tax rate?

What is the IRS tax for winnings? So lets say I made $60k in a year, how much would the IRS tax?

Reply With Quote
 
  #27 (permalink)
Trading for Fun
California
 
Futures Experience: Intermediate
Platform: MT4 / TSII / Oanda
Broker/Data: dbfx, ibfx
Favorite Futures: fx
 
Posts: 61 since Apr 2010
Thanks: 25 given, 42 received


ctmvas View Post
What is the IRS tax for winnings? So lets say I made $60k in a year, how much would the IRS tax?

100% of it is subject to taxation.

Reply With Quote
 
  #28 (permalink)
Elite Member
Lubbock TX
 
Futures Experience: Intermediate
Platform: NinjaTrader
Broker/Data: Stage 5 Trading
Favorite Futures: CL
 
MWinfrey's Avatar
 
Posts: 1,879 since Jul 2009
Thanks: 1,449 given, 3,304 received

I do not have a separate business set up to trade in. I trade in a joint account and only trade futures. I get a single 1099 at the end of the year from my broker. This 1099 simplifies things considerably and as such is a single taxable event regardless how many trades I place during the year. I am taxed on the amount of profit/loss reported on that 1099 and that's it. Very simple.

My plan for the near future is to trade from a Roth account. When I turn 59 1/2, I will be able to withdraw from my Roth account without penalty. By definition as I understand the tax laws is that proceeds from a Roth account are not taxable. Only contributions made to the Roth account are taxable at the time of the contribution. So, being as I will be trading from an existing Roth account, any money made trading futures will not be taxed when I withdraw the money. Further, because I don't any other form of income from a "real" job, proceeds from my Roth account will not effect my ability to draw social security.

Anyone with experience or knowledge contrary to what I've outlined is very welcome to comment.

Reply With Quote
The following 3 users say Thank You to MWinfrey for this post:
 
  #29 (permalink)
Elite Member
Dallas, TX
 
Futures Experience: Beginner
Platform: Ninjatrader
Broker/Data: Zen-Fire
Favorite Futures: ZN, 6E
 
gulabv's Avatar
 
Posts: 284 since May 2010
Thanks: 159 given, 155 received


ctmvas View Post
What is the IRS tax for winnings? So lets say I made $60k in a year, how much would the IRS tax?

Assuming you are in USA you would pay 60% of profits at the long-term capital gains tax rate and 40% at the ordinary income tax rate for futures trades.

Reply With Quote
 
  #30 (permalink)
Elite Member
Houston, TX
 
Futures Experience: Beginner
Platform: NinjaTrader
Broker/Data: Mirus Futures
Favorite Futures: M6E
 
Posts: 15 since Oct 2010
Thanks: 12 given, 5 received



MWinfrey View Post
I do not have a separate business set up to trade in. I trade in a joint account and only trade futures. I get a single 1099 at the end of the year from my broker. This 1099 simplifies things considerably and as such is a single taxable event regardless how many trades I place during the year. I am taxed on the amount of profit/loss reported on that 1099 and that's it. Very simple.

My plan for the near future is to trade from a Roth account. When I turn 59 1/2, I will be able to withdraw from my Roth account without penalty. By definition as I understand the tax laws is that proceeds from a Roth account are not taxable. Only contributions made to the Roth account are taxable at the time of the contribution. So, being as I will be trading from an existing Roth account, any money made trading futures will not be taxed when I withdraw the money. Further, because I don't any other form of income from a "real" job, proceeds from my Roth account will not effect my ability to draw social security.

Anyone with experience or knowledge contrary to what I've outlined is very welcome to comment.

This is a very interesting concept that I am looking into as well. Huge tax savings potential. I'm wondering how many traders here use this method for tax reasons? Also, for those who use it, do you use an automated strategy in it as well? Thanks!

Reply With Quote

Reply



futures io > > > The Tax Thread

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

Opening Breakouts and Reversals w/Al Brooks

Elite only
 

Introducing daytradr by Jigsaw, new stand-alone platform

Oct 19
 

RandBots: AutoTrading Bots to diversify your trading

Oct 24
 

TopstepTrader: Profiting Without Risking Your Own Money

Oct 26

Building Open Source Indicators for NT8 w/Fat Tails @ Lizard Indicators

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
A Trading Thread cpi65 Traders Hideout 1 August 12th, 2010 08:53 PM
FF allows the THREAD STARTER to ignore posters so they can NOT post in their thread. TheRumpledOne Off-Topic 2 September 19th, 2009 12:53 AM
Welcome Back Thread ! max-td Traders Hideout 0 June 17th, 2009 01:22 PM


All times are GMT -4. The time now is 04:06 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-10-17 in 0.08 seconds with 20 queries on phoenix via your IP 54.80.211.135