ES Tax Question

Discussion in 'Trading' started by Agassi, Nov 5, 2014.

  1. Agassi

    Agassi

    Hello,

    Here is my question:

    I day trade only ES and I also have a full time regular 9 - 5 job. Which one of the following 2 options is better in order to pay less taxes?

    1) I trade under my own name.

    • I understand that under this option the IRS does not allow me to use the trader status since I have a regular job.
    2) I open an account in my dads name.

    • My dad is retired and I support him financially
    • I do claim him as my dependent on my income taxes
    Question: If the expected profit from day trading ES is $100,000 per year. Then which one of the above 2 options is advantageous? Am I better of trading under my name and claiming my dad as my dependent on my taxes (he does not file income taxes on his own)?

    OR

    Am I better of trading under my dads name and he would qualify for active trader status and he file income taxes separately.

    Is option 2 better than option 1?

    Please advise the pros and cons and thanks a lot.

    Thanks