How do you manage your tax for income from trading?

Discussion in 'Taxes and Accounting' started by etrades, Jun 16, 2020.

How do you manage your taxes on income from trading ?

  1. Trust with Corporate Trustee

    0 vote(s)
    0.0%
  2. Trader Tax Status

    0 vote(s)
    0.0%
  3. Standard tax process - no additional entities for tax purpose

    3 vote(s)
    100.0%
  4. Other

    0 vote(s)
    0.0%
  1. etrades

    etrades

    Hi Guys,

    How do you manage your taxes on income from trading ?

    Like do you go with Trader Tax Status ? Or something like Trust with Corporate Trustee ? Or perhaps just do it as standard / regular tax method ?

    Also what is your opinion on what is the best method ?

    Thank you
     
    murray t turtle likes this.
  2. I only trade 1256 contracts, so 60/40. Best deal in America!
     
    Lou Friedman likes this.
  3. jys78

    jys78

    Don't need to worry about taxes unless you have profits!
     
  4. wrbtrader

    wrbtrader

    The OP needs to be worried about taxes even if he has losses because there's a limit on your deductions / credits depending upon how you file your taxes and then throw in the issue if the trader has another job....throw in a few other issues...

    Waiting until you become profitable can easily exacerbate tax problems.

    Another issue, taxes on trading are handle differently from country to country.

    wrbtrader
     
    kmiklas and d08 like this.
  5. BAT31

    BAT31

    H&R Block Tax Pro. The service assigns a human tax professional, and you can keep the same one indefinitely.
     
  6. smallfil

    smallfil

    You should consult a tax accountant. When, your financial situation is uniquely, only yours, it does not make sense to take bits of advice from other traders who could be in a different financial situation as yours? Just as you would not want your mechanic doing a heart transplant on you or your doctor to fix what is wrong with your car? This is best handled by a qualified tax professional.
     
  7. kmiklas

    kmiklas

    A good accountant is worth their weight in gold.
     
    wrbtrader likes this.
  8. %%
    NO state income tax state;
    roth
    or back door roth………………………………………………………………………………..May have to pay some tax on realty if I sell it/ok.I tend to ask or consult 2 cpa s or something like that
     
  9. newwurldmn

    newwurldmn

    Only if you earn their weight in gold a year
     
  10. jys78

    jys78

    Fair enough. Canadian crew here, just sum up net profit/loss (cap gains). Also... I was joking :)
     
    Last edited: Jun 17, 2020
    #10     Jun 17, 2020