don what do you mean your traders submit all expenses? you're saying if you have a remote trader he submits all his expenses from his cable modem to his mag subscriptions to his quotes? so he gives you a total expense # and you deduct it? what about home office exp?is that netted out? so on the k-1 it has one figure for net income or does it list gross income and then show total exp's for a net amount? i thought even with a k-1 traders had to do a sch c?don just curious when you file your corp taxes do you have to show every single trade all your traders made or do you summarize all trades for the year on 1 line? your traders total sales must be $300-$500 billion of sales
Sure, everyone should have a tax professional...all I'm saying is that we did our best to eliminate any need for "fancy" stuff that usually is not worth the effort. I spent years in Public Accounting myself, and I just like our guys to have the best tax treatment we can develop. All the best, Don
Traders turn in everything that is legitimate, from computers to cable modems and office expenses. Everything is "mark to market" so no trades have to be shown. Goldman does most of the accounting, our people just make the proper journal entries for each trader to end up with a "single number K-1" on triple net. Don
Don do you mean that the traders submit bills and you cut the checks to pay them out of their p and l or do you mean that the traders pay the bills and you put what they paid as a debit on their k-1? Also other then forming a llc and paying self employment tax, do you have a way traders can put pre tax dollars in a retirement plan?
Mostly they submit bills, but we also can pay recurring bills from their GS sheets. Regarding retirement...in my way of thinking, if you have 15% left in your pocket to do with as you please, that should work out better than most any "tax deferred" plan. A lot depends on your outside income from other things, spouses income, etc., but for most people this simple yet tax beneficial setup works very well. (again, not tax advice, just personal opinion from me, not Bright Trading). Happy New Year! Don
don you mean at the end of the year i submit a sheet thats says i spent 2k on software,3k on rent,$600 on phones right? your people aren't submitting every single bill are they? i'd think they give you a total for the year of each expense.i'm just curious how gs accounts for these expenses? when they file the k-1's with the irs they must list the traders total k-1 income then on another line list there expenses? i mean somebody that makes 400k could say they had 200k of expenses and the only gateway would be you as the irs would not know.as far as retirement unless the k-1 is paid to a corporation there's no way to do a retirement plan and i don't know if a k-1 can be paid to a corporation. in order to a do a retirement plan you must have earned income and pay social security taxes
All the expenses for the year are submitted, along with proof of course. Exemption from FICA seems like a pretty good benefit to me, regardless of what you do with the money. Don