Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
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 for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I would be careful using the advice of an educational company instead of a tax consultant who specializes in futures trading. They incorrectly stated that index futures are treated as 100% short-term capital gains when futures for a broad-based index is actually a 1256 contract and thus eligible for 60 percent long-term / 40 percent short-term.
America: Freedom to Fascism is a 2006 film by Aaron Russo, ( Aaron Russo - Wikipedia, the free encyclopedia) which alleges among a variety of claims that income tax is illegal. The documentary covers many subjects, including: the Internal Revenue Service (IRS), the income tax, Federal Reserve System, national ID cards (REAL ID Act), human-implanted RFID tags (Spychips), Diebold electronic voting machines, globalization, Big Brother, taser weapons abuse, and the alleged use of terrorism by government as a means to diminish the citizens' rights.
The Film Determined to find the law that requires American citizens to pay income tax, producer Aaron Russo set out on a journey to find the evidence. This film which is neither left, nor right-wing is a startling examination of government. It exposes the systematic erosion of civil liberties in America since 1913 when the Federal Reserve system was fraudulently created.
Tis tax season, so I thought I'd throw in my two cents.
I created a partnership entity, declared trader tax status, and hired a professional tax firm a couple years ago. This year, I am looking profitable, and am going to establish a mini 401k.
…
I plan to trade in my Roth as well as I become more consistently profitable.
I went with Green Tax, anybody else have experience with them. Mine has been good.
Tis tax season, so I thought I'd throw in my two cents.
I created a partnership entity, declared trader tax status, and hired a professional tax firm a couple years ago. This year, I am looking profitable, and am going to establish a mini 401k.
Without an entity and trader status, your deductible losses are limited to $3k per year. Who could ever imagine that you might lose more than $3k just starting out. Imagine it.
I've always done my own taxes, I may again. But each time I see the work done by the pro's, and thinking I can just copy it for next year, I pause, and have not switched back yet. This year I did have some local tax folks look at my past returns, and they all, 3, said stick with who I've got. So it is a littler trickier filing trader taxes than most.
And the mini-401k lets you put part of your profits in a tax advantaged account. And I believe you can trade in it later. So it's a double win. Hope to open mine up this year.
There are two national providers of this service plus plenty of local entity and tax guys, one you may already have a relationship with. I did not have anyone local, so I went with one of the nationals (not the one that recently did the webinar, as I wanted an entity and a cpa. Do your own due diligence).
I believe you have until April 15 to declare trader tax status for 2012. So definitely look into that now and see if it's for you.
Thanks for the info rpm...
Do you have to create an entity to declare your trader tax status, or can one do this without setting up an entity, much in the same way one can run a business as a sole proprietorship?
Green abd Company seems to keep their ear to the ground on tax issues that affect us. Securities Traders Need Tax Relief on IRS Cost-Basis Reporting Rules
477 Letters and Emails Sent So Far
New “cost-basis reporting” rules for 2011 are not functioning properly. Botched implementation is unfairly causing millions of taxpayers to significantly overpay their tax bills. The IRS should have issued the same set of rules for brokers and taxpayers, but did not. How can the IRS now send tax notices and audits to hundreds of thousands of taxpayers over 1099-Bs prepared under one set of rules, while holding taxpayers accountable to another set of rules? Taxpayers did not sign up to be deputy accountants for this mess!
I believe the entity (partnership) allows more deductions, in that I wanted my wife to attend trading travels. Green and Company has a treasure trove of info on their website. See if that can answer your questions for your situation. And compare to the answers from the recent seminar by traders accounting. GreenTraderTAx is the site I believe. I don't mean to turn this into a vendor thread, but they have alot of info on the site to read and you need to see how it applies to your situation.