That's about it. How would you structure yourself to trade full time? If income from trading is your only source of income? Is health insurance for yourself and family members 100% deductible if you were trading through an LLC? Any good resources to start looking up this information?
LLCs don't offer health insurance....if they do, it's not the best deal u can find. I'm looking for one myself. this issue has become the biggest downside of being an independent contractor. any suggestions?
assuming you make money from trading, buy Robert Green's book on Trader's Taxes. It covers everything.
Without having a wealthy spouse, I suggest structuting yourself into a trailer down by the river and learn how to live off the land. Then contact www.ehealthinsurance.com for when you get food poisned from eatingn mercury ladened carp and catfish. SAS
These are two sites by CPA's that have pretty good info, I think, although I've never been a client of either of them: http://www.traderstatus.com http://www.greencompany.com I doubt you'll be able to run your health insurance through a pure pass-through entity without having the premiums ending up as fully taxable, as it would otherwise amount to "having your cake and eating it too"; but don't take my word on that as I am not a CPA! See also this discussion regarding that: http://www.taxalmanac.org/index.php/Discussion:Real_Estate_LLC_Member's_Health_Insurance_Premiums I'm certainly interested in hearing other people's responses, if any.
I got the book recently - it is what you need. It goes into what is deductible and what isn't, and like anything having to do with the IRSit has some head scratchers. Such as - health insurance premiums ARE deductible if you trade through an LLC. Other health expenses (like insurance deductibles) also can be but only if you have non-owner employees and offer them the same benefits. The book is essential if you're not a CPA yourself.
Seriously, to answer your question: Pay your bills six months in advance. Setup an LLC or C-corp to provide your wife and her family (including you) insurance coverage (as a single-member LLC, you cannot provide insurance for yourself directly). Meet with a CPA to map out your financial plan. Meet with a successful trader to map out your trading plan. Practice, practice, practice on a sim with your system ready. Then, push the button.
Downsides: 50% chance of getting cleaned out in divorce 70% chance of your sex life going to shit 100% chance she will get older and fatter
Hang on, I seem to have all the downsides without any of the benefits, she's careerless and jobless......damn, how did that happen :eek: