Sorry but another Tax Structure question?

Discussion in 'Taxes and Accounting' started by Magnum29466, Apr 2, 2009.

  1. I've done the search but still can't get a good idea of whats the best tax structure to trade under. I'm mostly concerned with saving profits from taxes. I've read that just trading as personal capital gains is the best solution but 28% and up is pretty heavy. do the other entities not offer a better tax rate? I've heard the tax duductions with llc's are a myth.

    so once again what really is the best tax structure for a trader?
  2. Aaron


    If you trade as a corporation or partnership the profits are either a) passed through to you and taxed the same as if you, personally, were trading, or b) taxed at the entity level and then you get double taxed when you take a salary or declare a dividend from your entity. Neither method is any better than trading as an individual -- and plenty more complicated.

    Can you do your trading within an IRA or other qualified retirement plan?

    Or can you switch to futures? For futures, regardless of holding period, 60% of profits are taxed at the long term capital gains rate.

    Or, finally, just be content that you have profits to be taxed on. After a tough first quarter there are people who aren't so fortunate. My International Equity Plus program is down 7% year to date.

    Good Trading,
    Aaron Schindler
    Schindler Trading
  3. the best is a roth ira. no tax on gains ever.
  4. 'till they pass some law and tax it 100% when you die!

    IRA accts are sitting ducks for government confiscation.

  5. I trade futures but not exclusively. And ira limits are too small for my account. Guess I'll just have to suck it up like dude above me says. atleast paying a lot of taxes mean I made a lot of money...