Anyone have a LLC in California? Not sure how to save on taxes in CA with 500k profit

Discussion in 'Taxes and Accounting' started by dtryan, Apr 26, 2020.

  1. vm81

    vm81

    If you have already had those gains, I am not sure how you can go back and form an entity to account for these under the entity. You can sure form an entity for any trading you will do going forward but not sure how you can do what you are trying to do. Correct me if I am wrong as I could have missed some options.
     
    #11     May 6, 2020
  2. beatles

    beatles

    just pay your capital gains 'tax'
    you want to offset your gains with losses right and pay nothing in capital gains tax
    it's a small amount $500,000 not worth the legal and hassle, it's only 10% capital gain tax right?
    if your 'trader status' that $500,000 gain is tax as income tax.
     
    Last edited: May 6, 2020
    #12     May 6, 2020
  3. tiddlywinks

    tiddlywinks

    You can not "transfer" capital gains from one account to another. In your case, trades were opened AND CLOSED in a specific type of account with specific titling. The gains (and losses) have already been booked. End of story. If the positions were still open, it is perhaps possible for open positions to have been transferred to a different type/titled account with proper recording of the transaction and it's purpose. It makes no difference what type of entity anyone else may use, as their situation and circumstances have no bearing on yours.

    Earned Income is REQUIRED for retirement plan contribution, with few exceptions such as a spousal IRA. CAPITAL GAINS IS NOT EARNED INCOME. An entity by itself DOES NOTHING for trading, as the entity and/or individual trader must qualify for TTS (Trader Tax Status) before the IRS will allow capital gains to be treated as business income, in essense, earned income. Otherwise, every arm-chair market guru with a Robinhood account could create an entity and enjoy full benefits and perks of a legitimate and IRS recognized trading business. Unfortunately, it doesn't work that way. Earned income is a requisite for entity provided health benefits as well.

    Otherwise, pay up and consult with Green.
     
    #13     May 6, 2020
    TooEffingOld likes this.
  4. vm81

    vm81

    Capital gains in not 10% across the board. Also if it was bought and sold in short term - it doesn't even qualify as long term gains that have preferential treatment.
     
    #14     May 7, 2020
    Ifitis likes this.
  5. Ifitis

    Ifitis

    #15     May 7, 2020

  6. Call adp get a 401k for your self
    ThTs 40k
    Get a corporation deduct everything u can legally

    get a 529

    and do the same if married

    issues 1099 if u gave any one money
     
    #16     May 15, 2020