to mhoev. Do You mean You do not pay any taxes in France on daytrading gains? noway i mean that if a french resident trades from France on us market he has to declare in france and not in the usa because there is a treaty between the 2 countries.
Where do you get that information from ? I get conflicting replies to the oversea taxation all the time. Do you have a link that gives more info on the status of a pass-through entity ? Thanks, Oliver
An LLC is taxed similar to a partnership; profits and losses pass through to owners, unless you elected to be taxed as a corporation, unlikely. As long as the revenue is reported as capital gains you have no US liability; unless it is reported as earned or ordinary income.
This is too complicated for a link; you need a US accountant or tax attorney. If you set it up wrong, you need to fix it.
Thanks for that clarification. I am indeed looking for a (european) country without or with low taxation on gains from futures trading. Of course there are Andorra and Monaco (they do not have any taxes on personal incomes), but both are very small - perhaps to small to live there for more than 183 days per year... Candidates I found in literature or in this board are Belgium (special tax rate of 0%) and the Netherlands (1,2% on net capital). Still acceptable are the numbers I found for Ireland (20% tax rate) and Portugal (10%). But I am not sure if these numbers really apply for gains from futures trading. What I know for sure is that taxation is very, very unattractive in my country as the normal and quite high tax rate applies. Some years ago there have been no taxes on futures trading in my home country Germany but these times are gone now... Markus
chs245, Did you ask Don Bright your question? I would suggest you ask Don Bright(he has alot of experience in accounting) and you are with his firm. I would agree with metooxx , that you should have a US accountant(or at least employ one as a consultant) to help you on tax issues and questions for foreign traders. Before trading in the US markets, I would meet with a local professional in your area to see how short term trading is taxed. In some countries, the tax rate for short term trading may be much higher than investing . Gene Weissman Lieber & Weissman Sec., LLC gweissman@stocktrade.net
Markus- If you are one who can think and act 'outside the box' as they say, I may have some ideas for you. However, while not necessarily illegal yet, they do not bear discussion here, in e-mail, or probably even over the phone in these trying times. E-mail me at paumaluz@yahoo.com for an outline of the situation and a snail mail contact. For more info on my paranoia, see any number of sources such as Ascot Advisory.com, the Sovereign Society A-letter, International living.com. In summary, there will soon be no tax havens in the EU, and, as a NR Alien, the IRS will most likely be keeping 30% of your trading gains, with the onus being on you to get it 'refunded'.
I am in Sint maarten in the caribean ( no time difference with New York) and it is as well a tax heaven concerning DT on usa because they considered it as an off shore activitie.