Tax Rates on Day Traders

Jayford correct me if I am wrong. I have done little bit(really little ) of reading on "offshore banking, hedge funds" etc. It seems to me it should not be a problem to set up trading business in a way to avoid paying taxes unless you want to repatriate money. Am I missing something??

 

So I can basically set a business up out of another country? Wow.. if so, how?

 

Set up an Offshore Corporation.
Please Google it, I can not get into details online.

 

I never said anything about offshore banking. But, if you are a US citizen, living anywhere in the World, you owe taxes regardless of whether you repatriate the cash. Otherwise, you'd see people fleeing in droves. I'm not sure how the Corps get away with it, but its illegal for individuals. Lots of people do it though.

Note: I'm not a CPA. I've just been trading a long time so I know what's best for me tax wise. May be different for you.

 

You were right the first time -- it's 60% LT and 40% ST

 

Does anyone know (or know where I could/should look) if I want to find out how the IRS treats the trading of NON-US futures? In other words, is trading DAX or Nikkei futures treated the same (60-40) or differently as trading the S&P or other futures?

 

In order to claim trader status, dont you have to prove that most of your income is generated as a trader and not investor. Does the IRS actually allow you to choose a % in order to submit to IRA etc? So that part will be taxed FICA, etc. and the rest you choose to just be taxed income?? That is amazing!

Just curious. In the process of entering the biz, and trying to figure things out.

 

I am 80% sure 60-40 treatment doesn't apply to non-US futures.

 

Hi,

If I select MTM for this tax year, then gains/losses will be treated as ordinary G/L, not capital G/L? Does that mean Self-Employment tax of 15.3% will be due? Thanks