I started as a full time private trader since beginning of this year. Now I need to finish some paperwork for my son's health insurance plan, which requires me to provide my job title and salary of this year. Although my trading is profitable so far, I have no "regular" job and salary. Since this is my first year as a full time private trader, I have no idea how to answer these kind of questions. Is "Private Trader" considered as a job? Is my trading profit considered as "income" or "salary"? How do you guys trading alone at home dealing with this kind of issues mentioned above? Moreover do I need to pay social security tax? Can I apply home mortgage as a private trader (I can only provide less than one year full time trading history)? I am ordering "The Tax Guide for Traders" from Amazon and hopefully I can get answers for most of my questions. However before I receive that book, can someone answer my questions so that I can finish my son's health insurance paperwork as soon as possible? Thanks in advance. - Clearpicks
No such thing as a full time private trader.. you are a trader You should be either under market to market accounting, or have your own LLC set up. Your gains should be considered ordinary income.. Income being key word. You are not salaried. If you are going to be applying for mortgages or any extensive use of credit, form an LLC and say you are an equities trader for the LLC compensated based on performance.. ect. I suggest you contact a trader accountant.. Good luck.
Do this for fun. Go to the local bank, dressed in your best suit, tie, shoes etc. LOOK SHARP!!! Ask for the loan officer. When he/she comes and after the usual chit chat and he/she says: What can i do for you today?..... Say you would like to borrow 500k. When he/she gets to asking "Surely you have a business plan in mind", say, "INDEED, i want to trade the Futures market"....... You will be promptly shown the door....
my friend i've been trading 20 years full time. you msut have 2 or most bankls want 3 years of a full tax return with a sch c showing you're a business. i've never had one problem getting aloan but then again i've done pretty well over the years. for your son's health ins put occupation "trader in securities".
In regards to getting a mortgage and being a trader, I am a loan officer at a medium size bank in NY. Anyone can get a mortgage. You'd be surprised on who we approve. Just don't expect to get a 5.5% 30 yr fixed. You're going to need to do a ''stated income'' program or a "NINA" (no-income, no asset) loan. You'll need to have some decent equity in your home for a refi or be able to put a decent down payment on a home you're buying.(at least 10%). The more documentation you can provide the better your rate will be. For example: if you had a salaried job for the past 20yrs and you had some cash in the bank and your FICO scores were 680 or better you can pretty much walk into any bank and get the best rate. Banks assess risk. The less you can show the more they'll make you pay. If you're in NY,GA,PA,MI,FL,Conn,Mass(I'm registered to do business in those states) and want me to get you some more details just send me a PM and I'll give you my #. Or if you just want some other tips on how not to get over charged on your loan let me know. Good Luck.
my friend owns a mortage company and is a direct lender. if you have a good fico he can get a stated loan now at the same rate as there best rates. one must have a very good score to get it. he jsut got it a few months ago
Clearpicks will need a "no doc" loan; not a "stated" one. He cannot prove self employment as he has no tax returns or business license and has been self employed less than a year.
Thanks for all the replies. Whether or not being able to get a loan is not important to me as long as I can keep the current trading account growth rate.
I have a high credit score, and recently applied for a home loan through countrywide. Because of my score, they say I qualified for a fast track process, which basically meant I filled out a two page app and did not have to provide any proof of income. To the best of my knowledge, they did not verify my employment of anything else on the app. I was approved the same day, and never had to do any additional work on my part. Having good credit rules!