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Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,120 since Dec 2013
Thanks Given: 4,488
Thanks Received: 10,350
Interesting article for all you full time traders out there. Discusses Trader Tax Status as well as the potential health insurance and retirement plan savings that you can achieve with an S-Corp. (Which is what I do, so I can vouch for its effectiveness - at least in my case!)*.
How To Structure A Trading Business For Significant Tax Savings by Robert Green / Green & Company / Green, Neuschwander & Manning
Read at GreenTraderTax or at Forbes
*Full Disclosure: Green, Neuschwander & Manning, LLC have been my accountant for approximately 10 years. If you would like to discuss in anyway feel free to message me. I have no financial arrangement with them, just a happy client spreading the good news
I'm a tax professional that started trading futures last year. I'm blown away with how favorable the tax treatment is and can't image why anyone would trade any other type of security on a short term basis.
I read Mr. Greens book which provided some very good information for taxpayers and professionals alike. He recommends the practitioner making footnotes to provide details relating to "trader tax status".
Does anyone file a form 8275 disclosure statement to provide additional details? I just know in my experience filing a Sch C with expenses only is eventually going to be examined.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,120 since Dec 2013
Thanks Given: 4,488
Thanks Received: 10,350
I'm a Green (Neuschwander & Manning) client and have been for many years. On my latest return they sent me they added 8 pages of Federal Statements which basically explains lots of details on the actual return. They also added 2 pages of Federal Supplemental Information which justifies my qualification as a "trader in commodities" and highlights the rules associated with that. Not sure if this is what they mean "footnotes" but I've always been impressed with their thoroughness.
Thinking about this some more, I've always assumed that those additional pages are included in my return but maybe they are just there for explanation/record. I think I will ask.
My return is large but it does not include an 8275.
According to the IRS
About Form 8275, Disclosure Statement
Taxpayers and tax return preparers use this form to disclose items or positions that are not otherwise adequately disclosed on a tax return to avoid certain penalties.
I'm not an accountant but my interpretation of that is that it's used to add information about things not on your tax form any where else, not to supply additional information for things that are.
It is my pleasure to welcome back Ryan Curran, CPA, for our 383rd webinar event, on Thursday, April 30th @ 4:30 PM Eastern US.
This webinar would normally be available only to Elite Members, however, considering the extraordinary times we currently face and the tax implications, I have decided to make the webinar open to everyone.
The title for the event is "2020 Tax Topics for Traders w/ Ryan Curran CPA", and bullet points include:
- Detailed Discussion of Trader Tax Status - What tax benefits does TTS afford taxpayers?
- MTM Election and implications
- Wash Sales
- Tax Reporting Requirements
- Entity Choices - Sole Proprietorship / LLC / S-Corporation / C-Corporation
I'm trading futures out of an IRA roth account. Account grows tax free(assuming I can be profitable) and there are no taxes/penalties if you withdraw after the age of 59 1/2. There are some other withdraws that are exempt as well. This is my simple strategy.
I needed some help or advice about a tax related question. Say someone has an account through Interactive Brokers and they have the legal resident of Saudi Arabia listed as the current country of residence (currently live and work there). However they are a citizen of the Philippines, however the wages made from working there are tax free. Here comes the question. If that same person holds a U.S. stock and gets paid a dividend who pays the tax or who takes the tax? I know some countries withhold a certain percentage of the dividend paid. I thought I read that Saudi withholds 5%, but the Philippines withholds 30%. If you are a legal resident of Saudi Arabia and they withhold, is it still required to pay taxes again to the Philippines? Thank you for the help if anyone has experience with this.
