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


The Tax Thread
Updated: Views / Replies:37,750 / 216
Created: by Big Mike Attachments:3

Welcome to futures io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • 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, and we will never resell your private information.

-- Big Mike

Reply
 3  
 
Thread Tools Search this Thread
 

The Tax Thread

  #51 (permalink)
Membership Permanently Revoked
 
Futures Experience: Intermediate
 
Posts: 1,176 since Nov 2009
Thanks: 221 given, 843 received


supermht View Post
Just wondering what software do you use for tax reporting?

I personally use TAPRO (aka TradeAccountant Pro)

Schedule D Portfolio Management Software - TradeAccountant: Reconciliation Tools, Trade Journal, Expire Options, Wash Sales, 4797, 6781, Export to Excel or Tax Software (TaxCut and TurboTax as .txf).

but there are really only two options.. the other one is..

http://www.tradelogsoftware.com/

Reply With Quote
The following 2 users say Thank You to sysot1t for this post:
 
  #52 (permalink)
Membership Permanently Revoked
 
Futures Experience: Intermediate
 
Posts: 1,176 since Nov 2009
Thanks: 221 given, 843 received


RM99 View Post
How many of you guys are incorporated? I'm seriously considering it, because by the time you realize that it's necessary/advantageous, it's more of a pain at that point.

once you make it a proper business, you will pay a bit "more" for some things (market data being one)... but it is well worth it when you can write off expenses and fund your own retirement, etc.. which "reduces" your profit.. and helps you manage your overall tax burden.

I have an LLC for my technology consulting, so I just trade one of the LLC's account in addition, but most of my trading is really on IRA account.

Reply With Quote
 
  #53 (permalink)
Membership Permanently Revoked
 
Futures Experience: Intermediate
 
Posts: 1,176 since Nov 2009
Thanks: 221 given, 843 received



RM99 View Post
How many of you guys are incorporated? I'm seriously considering it, because by the time you realize that it's necessary/advantageous, it's more of a pain at that point.

here are some links that you might find of interest..

Why Form Your Own Entity

GREEN TRADER TAX
Fairmark.com
Traders Accounting - Services for Day Traders - Taxes, Accounting, Business Strategy

Reply With Quote
The following 3 users say Thank You to sysot1t for this post:
 
  #54 (permalink)
Membership Permanently Revoked
 
Futures Experience: Intermediate
 
Posts: 1,176 since Nov 2009
Thanks: 221 given, 843 received

for those interested, greentrader tax is having a webinar sponsored by lightspeed today...

https://www1.gotomeeting.com/register/523648568

Before filing your 2010 tax returns, traders and investment managers should learn these tips from trader-tax industry pro Robert A. Green, CPA and CEO of GreenTraderTax.com. Learn how to set up your tax affairs better for 2011 too.

Please register for each part separately.

Part I - Trader Tax Benefits, Qualifying, Business Expenses & Tax Treatment
Tuesday March 29 at 4:30 PM EST

• Trader tax benefits for forex, securities and futures traders;
• How to qualify for trader tax status, and claim these tax breaks, even for 2010;
• Business deductions (trader tax status) vs. limited investment expenses;
• Key tax treatment differences between securities, futures, forex and other instruments;
• Tax elections and when to make them; and
• How to handle pre-business education expenses, while staying clear of promoters' false promises for education deductions using poor multi-entity schemes.

Part II - Trader Tax Returns, Entities & Retirement Plans
Thursday March 31 at 4:30 PM

• Claiming trader tax status and preparing business trader tax returns;
• Trading gains/losses are reported on different forms;
• Problem and solution: Transfer of income strategy;
• Trade accounting: A snap for futures & most forex traders;
• Trade accounting is a responsibility for securities traders;
• Trade accounting for securities is easier with TradeLogฎ
• Net operating losses (NOLs).
• Entities for traders; and
• Retirement plans for traders

Reply With Quote
 
  #55 (permalink)
Membership Permanently Revoked
 
Futures Experience: Intermediate
 
Posts: 1,176 since Nov 2009
Thanks: 221 given, 843 received

Green Trader Tax Presentation

here is a good overview from greentrader tax on starting your own trading business.

Attached Thumbnails
The Tax Thread-greentradertaxwebinarvegasexponov2010.pdf  
Reply With Quote
The following 4 users say Thank You to sysot1t for this post:
 
  #56 (permalink)
Elite Member
Georgia, US
 
Futures Experience: None
Platform: Various
Favorite Futures: Various
 
josh's Avatar
 
Posts: 4,898 since Jan 2011
Thanks: 5,143 given, 11,212 received
Forum Reputation: Legendary

I've read some of the articles referenced here, and some of the posts, but can someone who says a corp of some kind is better than reporting as a sole proprietor just bullet-point it? Maybe just 3 reasons. I see all this generalized stuff, but I don't see the real benefit, except to the company who you pay to do the paperwork.

Reply With Quote
 
  #57 (permalink)
Membership Permanently Revoked
 
Futures Experience: Intermediate
 
Posts: 1,176 since Nov 2009
Thanks: 221 given, 843 received


josh View Post
I've read some of the articles referenced here, and some of the posts, but can someone who says a corp of some kind is better than reporting as a sole proprietor just bullet-point it? Maybe just 3 reasons. I see all this generalized stuff, but I don't see the real benefit, except to the company who you pay to do the paperwork.

On the presentation, just take a look at slide 7, and 41-44... those are the main benefits, the rest are all manuvering to minimize the tax liability...

I only disagree with one thing that most people say that shouldnt be done. A beginner would benefit greatly from having a SMLLC-SCorp setup from the start. The cost to setup a proper LLC will run you about $500-600 from a number of different sites, it is always wise to get the LLC done on your own state.

As long as you are going to capitalize it properly, and by that I mean around $20-30K (ideally $50K), the costs to operate the LLC are minimal and you will get from the start the ability to deduct everything you need to... even better, with your own business you can also move the IRA's into a soloK account and then do other things with that money that you could not otherwise do...

that is just my opinion and my own preference.. of course, the above doesnt work right if you are doing it with $5K.. as it would represent a big portion of your trading funds, but again with $5K one should be trading forex and microlots to learn to trade in reality, and should stay away from futures... a lot better to learn to trade risking $2-3.00 per day or even trade, than risking $50-100 and blowing up on no time.

again, just my opinion.

Reply With Quote
The following user says Thank You to sysot1t for this post:
 
  #58 (permalink)
Elite Member
Georgia, US
 
Futures Experience: None
Platform: Various
Favorite Futures: Various
 
josh's Avatar
 
Posts: 4,898 since Jan 2011
Thanks: 5,143 given, 11,212 received
Forum Reputation: Legendary


sysot1t View Post
the costs to operate the LLC are minimal and you will get from the start the ability to deduct everything you need to...

Why do I need a corp to itemize my deductions? I do that already as a sole proprietor.

Reply With Quote
 
  #59 (permalink)
Membership Permanently Revoked
 
Futures Experience: Intermediate
 
Posts: 1,176 since Nov 2009
Thanks: 221 given, 843 received


josh View Post
Why do I need a corp to itemize my deductions? I do that already as a sole proprietor.

btw, itemizing does not mean you can write everything off the same year... I believe your deductions must not be a lot, but at the same time.. I guess it all depends as to what you call "deductions"...

I like to write off all my computers, training, software, market data expenses, subscriptions, etc. without limitations... I also like to "deduct" my 401(k) contributions to my own retirement plan, along with my life insurance payments and other "deductions" aka benefits that I decide to provide for myself that fall within the law...

Reply With Quote
The following user says Thank You to sysot1t for this post:
 
  #60 (permalink)
Elite Member
Georgia, US
 
Futures Experience: None
Platform: Various
Favorite Futures: Various
 
josh's Avatar
 
Posts: 4,898 since Jan 2011
Thanks: 5,143 given, 11,212 received
Forum Reputation: Legendary



sysot1t View Post
btw, itemizing does not mean you can write everything off the same year... I believe your deductions must not be a lot, but at the same time.. I guess it all depends as to what you call "deductions"...

I deduct things like my office equipment using section 179 so I can deduct it all at the same time. I do not deduct anything currently where I have to depreciate it, as I used to when I owned rental property. But this doesn't answer my question as to why a corporation is necessary for these deductions?

Another common belief, that a corporation like an LLC provides protection for personal assets, is misunderstood--if it were that easy we would all just operate under an LLC and be liable for nothing.

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)

FIO Journal Challenge featuring NinjaTrader ($2,000+ of prizes)

May

An overview of volumetric analytical tools w/Sergey Sokolov @ PTMC

Elite only

John Hoagland (TBA)

Elite only

FuturesTrader71 Extended Ask Me Anything (AMA)

Elite only

Pete @ Jigsaw Trading (TBA)

Elite only

John @ No BS Day Trading (TBA)

Elite only

An Afternoon with FIO member Softsoap (being rescheduled)

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 11:23 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 2017-05-26 in 0.13 seconds with 20 queries on phoenix via your IP 54.166.242.76