i have recently been laid off from a job and have been trading forex iam also considering trading listed stocks and was wondering if it would be legal to collect unemployment if i traded through a prop firm?
Shhhhhhhhhh I won't tell. Just don't have a check cut to you until after the Six months of UE insurance is up. Or open the account in a relatives name and work out the tax with them later. It's FREE money!
Were you were laid off from a regular "job", and looking to Prop trade and collect ? Just be creative!
In California, if you are not paid regularly, you can collect unemployment for the weeks you are not paid and you can fill out a form so as not tobe paid on the weeks you get a check. There used to be no limit on the size of the check.
same thing happened to me with the lay off. I have been told by numerous people that you are essentially self-employed and not recieving a salary, and are trading your own money... Unless you work for one of the rare props that pay you, you should be fine.. I hope, b/c I have been doing this!
You should check with a CPA to get the facts about this matter but here is how I look at the problem right now. The money you make trading is listed on your income tax return on the schedule 2 form as short and long term capital gains and these profits and/or losses are handled differently than the money you make at a regular job which is reported on another form. Unless of course you consider yourself a professional trader and in that case you would pay yourself a salary and the corresponding social security taxes to the government. You would also have to prove to the IRS that trading securities is how you make your living before you could do that. The benefit that you would receive from being a professional trader would be the ability to deduct all your losses each year and the elimination of the wash rule. Nonprofessionals now can only deduct 3000 dollar a year. Based upon what you have said so far, I hardly think that the trading that you are doing now would have any effect upon your unemployment compensation which is paid to compensate you until you find another job. On the other hand I could be wrong. regards
The guy was asking upon leaving a "REAL" job and going TO a "PROP" firm.......will he STILL be able to collect his check, or does Prop trading count as a job.......... That was the ORIGINAL QUESTION........I say he can collect and PROP trade. That is making the assumption that he contributed to SUEI on the pay stub. Now he pretends he is still NOT working since we all know a PROP trader is not an employee. If his P and L proceeds are being paid to him on a 1099 then this is a problem telling the state he is not "working" . If the 1099 proceeds are not paid out while he collects UE, he is indeed not committing a fraud!.......well in my eyes!
And who pays for that???? People who pay taxes. If you make money - dont take unemployment money. Its not free money. Its our money!