Is there a way to pay LONG TERM CAPITAL GAINS(15%), instead of regular income tax(35%

I heard there is a way to make an LLC and convert trading income tax into long term capital gains tax. If anyone knows more about this or has heard any person or group do this please comment.

 

Claim trader status

 

I know 2 guys down on cme floor that use standard corps, takes $1 salary and the rest in capital gains, no different then those ceo's of fortune 500 claiming to help the little guy buy getting only a $1 salary.

 

How can you compare the CME trader taking risk vs. a suit sitting in a corner office?

 

convert tax?

 

no. at least not legally.

 

Or you can just do it the warren buffet way!

http://www.forbes.com/lists/2006/12/C0R3.html

take a low salary at 100k, then use the rest as capital gains. But if you're not making 300k + a year why even bother? (not worth the effort with all the paperwork) just pay your taxes.

 

How is that possible, would I need to set up an LLC with a partner. This would save me a huge chunk of money every year if I can save 20%

 

with LLC you are not going to get any tax advantages. with a partner or without. you can deduct some of your current expenses(which is subject to a 2% floor on personal taxes) that 's about it. you can "play" with partners tax brackets. but imo-it's not really worth it.
don't forget about self employment taxes.