The Tax Thread - futures io
futures io



The Tax Thread


Discussion in Traders Hideout

Updated
      Top Posters
    1. looks_one SMCJB with 34 posts (49 thanks)
    2. looks_two Big Mike with 29 posts (42 thanks)
    3. looks_3 sysot1t with 17 posts (20 thanks)
    4. looks_4 lawdam with 8 posts (2 thanks)
      Best Posters
    1. looks_one gulabv with 1.8 thanks per post
    2. looks_two SMCJB with 1.4 thanks per post
    3. looks_3 Big Mike with 1.4 thanks per post
    4. looks_4 sysot1t with 1.2 thanks per post
    1. trending_up 139,088 views
    2. thumb_up 212 thanks given
    3. group 400 followers
    1. forum 261 posts
    2. attach_file 3 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
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

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

 
Search this Thread
 

The Tax Thread

(login for full post details)
  #1 (permalink)
 Big Mike 
Site Administrator
Swing Trader
Data Scientist & DevOps
Manta, Ecuador
 
Experience: Advanced
Platform: Custom solution
Trading: Futures & Crypto
 
Big Mike's Avatar
 
Posts: 50,150 since Jun 2009
Thanks: 32,655 given, 99,065 received

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 CTA/professional, etc.

If you have something to share on the subject please chime in.

Mike

We're here to help -- just ask

For the best trading education, watch our webinars
Searching for trading reviews? Review this list

Follow us on Twitter, YouTube, and Facebook

Support our community as an Elite Member:
https://futures.io/elite/

Visit other sites? Please spread the word about your experience with our community!
Follow me on Twitter Visit my futures io Trade Journal Started this thread Reply With Quote
The following 5 users say Thank You to Big Mike for this post:

Can you help answer these questions
from other members on futures io?
Mack + Order Flow
Emini and Emicro Index
Pulling Historical Account
Sierra Chart
Simple code to end my indicator
NinjaTrader
Running two strategies on one chart; Has anyone done it …
MultiCharts
Pause calculation When Position is Open-Backtesting
ThinkOrSwim
 
Best Threads (Most Thanked)
in the last 7 days on futures io
Spoo-nalysis ES e-mini futures S&P 500
52 thanks
Are you sure that your broker cant spy your trades and w …
19 thanks
Would you share your Holy Grail?
16 thanks
Want your NinjaTrader indicator created, free?
15 thanks
Big Mike in Ecuador
14 thanks
 
(login for full post details)
  #3 (permalink)
 cory 
the coin hunter
virginia
 
Experience: Intermediate
Platform: ninja
Trading: NQ
 
cory's Avatar
 
Posts: 6,078 since Jun 2009
Thanks: 866 given, 7,996 received


there is no advantage if you trade equities, this much i know.

Reply With Quote
The following user says Thank You to cory for this post:
 
(login for full post details)
  #4 (permalink)
 wirechild 
Arkansas
 
Experience: Intermediate
Platform: NinjaTrader
Broker: IB
Trading: TF, 6E, 6B
 
Posts: 86 since Jul 2010
Thanks: 192 given, 135 received

I have spent a lot of time with this issue. Questions and issues I had to figure out.

Do you have a LOT of deductions or expenses other than trading fees?
Do you need "earned income" to offset other things?
Is all of your income from trading or do you have other things?
Does your spouse work or have income?
Wash sale rule? This was a big concern to me as I trade mostly the same ETF's, no longer an issue as I switch over to futures.

For me the self employment tax negated all benefits of filing as a business. Self-Employment Tax

Great timing for a thread as the IRS rules are certainly going to change for traders over the next couple years.

Reply With Quote
 
(login for full post details)
  #5 (permalink)
 gulabv 
Dallas, TX
 
Experience: Beginner
Platform: Ninjatrader
Broker: Zen-Fire
Trading: ZN, 6E
 
gulabv's Avatar
 
Posts: 286 since May 2010
Thanks: 161 given, 167 received

Y'all may want to check out Traders Accounting

They specialize in tax issues for traders (equities/futures/options/forex), have webinars, emails, etc. that may be helpful to some on this forum.
I do not work for them or get any kickbacks for mentioning them LOL !

Hope this helps,
gulab

Reply With Quote
The following 7 users say Thank You to gulabv for this post:
 
(login for full post details)
  #6 (permalink)
 Dragon 
Bellingham, WA
 
Experience: Intermediate
Platform: Ninja
Broker: Zen-Fire
Trading: 6E, CL
 
Dragon's Avatar
 
Posts: 494 since Aug 2009
Thanks: 747 given, 259 received

Has anyone created an S-Corp instead of an LLC to trade in?

Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #7 (permalink)
 aslan 
Market Wizard
Madison, WI
 
Experience: Advanced
Platform: ALT
Trading: ES
 
aslan's Avatar
 
Posts: 622 since Jan 2010
Thanks: 351 given, 1,117 received

I have used Traders Accounting in the past to help get set up correctly. They are good, but they don't give it away for free. Everyone's situation is different, and there are reasons to set a business up in different forms. It can also depend on where you live, so it does not hurt to talk to your accountant as well (or find one). A local person can also get business entities in place for you. Traders Accounting has the trading business expertise, but a local person that you can go talk to might also serve this purpose.

Personally, I have a corp that controls an LLC that controls my trading accounts. For my situation, this was the best set up. For others that would be overkill.

Reply With Quote
The following 2 users say Thank You to aslan for this post:
 
(login for full post details)
  #8 (permalink)
 gulabv 
Dallas, TX
 
Experience: Beginner
Platform: Ninjatrader
Broker: Zen-Fire
Trading: ZN, 6E
 
gulabv's Avatar
 
Posts: 286 since May 2010
Thanks: 161 given, 167 received


aslan View Post
Personally, I have a corp that controls an LLC that controls my trading accounts. For my situation, this was the best set up. For others that would be overkill.

Aslan - can you share in what situation the corp/LLC setup is beneficial?

Thanks,
gulab

Reply With Quote
 
(login for full post details)
  #9 (permalink)
 aslan 
Market Wizard
Madison, WI
 
Experience: Advanced
Platform: ALT
Trading: ES
 
aslan's Avatar
 
Posts: 622 since Jan 2010
Thanks: 351 given, 1,117 received


gulabv View Post
Aslan - can you share in what situation the corp/LLC setup is beneficial?

I am not an account or tax advisor, so please talk to someone that knows what they are doing, as everyone's situation is different. There are a lot of options, and you have to understand the tradeoffs for each different business model, based on what your objectives are.

Reply With Quote
The following user says Thank You to aslan for this post:
 
(login for full post details)
  #10 (permalink)
 Big Mike 
Site Administrator
Swing Trader
Data Scientist & DevOps
Manta, Ecuador
 
Experience: Advanced
Platform: Custom solution
Trading: Futures & Crypto
 
Big Mike's Avatar
 
Posts: 50,150 since Jun 2009
Thanks: 32,655 given, 99,065 received


Well hopefully someone will open up, the point of the thread is to discuss tax situations We know you aren't a CPA giving legal advice



Mike

We're here to help -- just ask

For the best trading education, watch our webinars
Searching for trading reviews? Review this list

Follow us on Twitter, YouTube, and Facebook

Support our community as an Elite Member:
https://futures.io/elite/

Visit other sites? Please spread the word about your experience with our community!
Follow me on Twitter Visit my futures io Trade Journal Started this thread Reply With Quote
The following 5 users say Thank You to Big Mike for this post:


futures io Trading Community Traders Hideout > The Tax Thread


Last Updated on August 12, 2021


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada), 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