Thanks, I wanted to post some more details so I can get more clarity though: 1) loss incurred trading stocks in 2009. Generates a capital loss carryover. Gains incurred trading futures in 2010. Does the gains apply against the capital loss carryover? No MTM was declared at all for any year. 2) loss incurred trading stocks in 2009. MTM was declared ahead of time so that you have MTM treatment in 2009 (for stocks only, not futures). You have NOL ordinary income carryforward which you carry forward to 2010. In 2010, you leave the stock trading business and start trading futures. No MTM declared for futures. You have gains trading futures in 2010. Are the gains applicable against the NOL carryforward? Thanks
Now you have me nervous â although I did have an independent attorney look the arrangement over..... And I had Legalzoom set it up However You can never be too careful where the IRS is concerned (and I simply deplore dealing with the IRS on anything) Good Feedback Sir
Sorry, I won't speculate on what the rules will be next year. My answer applied to the laws as they now sit on the books.
You lawyer was fine, you're not doing anything illegal, it's just unfortunate your lawyer knew nothing about accounting then he would have been able to recommend you opt out of all the stuff they are trying to sell you that you really don't need. If I were you, I'd think do I really need this C-Corp.... probably cost like $2500 / year for a tax return and all the records you have to keep going. So if you are at the 30% tax bracket, they you need $8333 worth of medical expenses to make this worthwhile and probably more than to account for the headache of doing this. So after you decide if you want this (which I'm assuming is probably not) just go to an accoutant you can TRUST, and take your LLC that you chose to elect as a S-Corp, and disolve your C-Corp. Then you'll save money by not paying bookkeeping fees, and you'll be able to actually trust what someone says.
ok, fair enough. I am still confused about your answer that's why I posted more details. Replace where I wrote 2009 with 2007, and replace where I wrote 2010 with 2008. I couldn't find the answer on Green's website.
Thanks for the heads up. They make it sound so downright easy it seems almost unreal. So I was a bit skeptical. However, I would like to hear some more personal testimonies. I doubt I will use their service to prepare taxes but am looking into finding ways to better structure my trading business. Anyone else with positive or negative feedback as far as Traders Accounting is concerned?
I will try to make this simple: In general, S Corporations and LLCs do not pay any income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns. PERSON 1: Idiot using S corp/LLC: ABSOLUTELY ALL their income (ALL income automatically passes through to their personal tax forms from S corp/LLC), pays federal/state/local tax + 14-15% self-employment tax. Also has all that lovely extra costs of paperwork and extra tax forms. "Protection of their assets" is idiot's dream, since if you did anything illegal or harmful, they will pierce your corporate veil and you will not have any protection. Your personal trading activities don't need the kind of protection offered by an entity. PERSON 2: Smart person reports income on their cap gains, pays no self-employment tax. Very simple
Look it is so simple. Form an LLC and elect for it to be taxed as an s-crop and remember to include 1 other person. That's it! You don't need anything else you don't want anything else. Simple!
You won't find the answer on Green's website. He wants you to sign up for a 30 minute consultation at $175. My answer is as clear as I can make it for free.