Yes I have 2 children, 4 and 2. Iwanted to start a Roth IRA for the 4 year old, but I guess I need to wait a few years when she can TECHINALLY be paid for jobs. I'll ask about the kids education investment. Don't want another property, yet. Wife is a PT, but not many writeoffs. Damn, you sound like a busy person. I do believe in educating yourself, and I already have a masters, and with kids I find spending time wiht them outweighs going back to school. but some finance classes and options classes may work out well. I'm getting things as I go along. I was aware of making pre-payment to the irs, But I thought I could just send in a check for whatever amount I felt like paying. Boy should have been more aware of the Quarterly thing. I don know this, between ideas from here and advice from a CPA and my reading/research, that in 2 months I will be much more understanding of this. Entity... I am wondering about that. Was considering that early in the year. I think my problem is that I assusme I can do it all, and I just can't. SPend enough time researching companys/trading/family & mowing the fucking lawn(paying for a service next year) LOL
Also note, I believe you can re-file previous years' tax returns and spread a large dump of $$$ over previous years. But only worthwhile if your overall tax bracket is significantly lower. Dunno if it works for a "huge" profitable position or if more for salary issues. Also consider how it might affect your AMT As I said, consider a session with a tax-savvy CPA. They will likely more than recompense your investment in them.
He is absolutely correct, you should consult with someone that knows about traders taxation, much of the advise you are receiving is dubious at best. Jim Crimmins, Traders Accounting
I'll look through that before meeting. HEy, Howin the hell do you find an accountant specializing in traders? THe one I called was referred by my parents financial advisor (whom I have faith in and knows I trade). Not like you open the phone book and look up accountant and see TRADERS. Crappy living in a smaller city (Upstate NY Syracuse)
http://www.greencompany.com/ These guys are pro's and likely what you are looking for. As soon as I started worrying/looking into my potential tax liability last year from my phenomenal trading profits (for me personally) it was early October and I was looking at around $150K in profit. By Jan 1 that number was less than half. Take your profits man. Cheers
taxes are not a rocket science..really...i've been preparing them by myself for years. if i can do it-most likely you can do it too. no special traders accountant is needed, unless you have some really "creative" expenses or complex trades. short term -taxed same as salary(i did provide link with brackets here),long term-5-15%. that's about it. forget about deductions in this business, specially in your case. you can however elect yourself as a trader- http://www.fairmark.com/traders/intro.htm but...even IRS is not clear about this "trader" status. specifically what to do after you elect yourself as a trader and not going to trade anymore.
It's too bad it doesn't have options because most would collar that profit. And probably make even more money on just selling calls all day long. did you declare yourself a full time trader last year? What did you put down as your 1040 last year for occupation? Not much to get around Uncle Sam on taxes, if you want to lock in on that profit, you'll have to pay the short term cap tax. If you can figure out a way to extend the holding period to over a year via some kind of hedge, then you can get into the long term cap tax rate. either way, it's a good problem to have.
surprising how being licensed traders (if series 7 licensed) and giving advise, all these posts open themselves up to recriminations (actual cases exist, as well as these very same questions and situations are posed on the tests) either way, its good someone with trader taxation experience has weighed in on these matters, there's more to the discussion about handling a windfall than just finding ways to lower ones profile and resultant tax liability. charitable contributions often makes one the hero to the recipient and feel good for their charity in one of the most common and least understood. it just might be worth paying for an option (whether one considers is a put or a call is quite humorous) and buying a consultation with an CPA that specializes in trader taxation cases.... just a thought, but not adivse.... cheers, now let's suggest some charities: 1) Poor Traders Relief Fund.....