whats involved

Discussion in 'Taxes and Accounting' started by watchdaride, Jul 25, 2017.

  1. Robert Morse

    Robert Morse Sponsor

    This is too general. I have $4mm individual accounts and $100K LLCs. You need to do what is best for you.

    Good luck,

    Bob
     
    #12     Jul 26, 2017
    Xela likes this.
  2. newwurldmn

    newwurldmn

    There are rules on what you can write off against trading and capital gains profits. I do not beleive an LLC exempts you from those rules.

    If you already have a car business my advice is for you to get an accountant anyway. You might be surprised all the deductions you are entitled to.
     
    #13     Jul 26, 2017
  3. algofy

    algofy

    Agree, use some of those trading profits and hire a pro, easy.
     
    #14     Jul 26, 2017
  4. dealmaker

    dealmaker

    There are a few tests for trader tax status and one of them is minimum of 720 trades per year....



    ps you'll be well served to contact a CPA that understands trader tax, 99.99% of CPAs have no clue.
     
    #15     Jul 26, 2017
  5. Robert Morse

    Robert Morse Sponsor

    "I only trade futures."
     
    #16     Jul 26, 2017
    dealmaker likes this.
  6. dealmaker

    dealmaker

    #17     Jul 26, 2017
  7. Fonz

    Fonz

    https://www.elitetrader.com/et/threads/option-trader-tax-status.304156/#post-4356011

    As a Future trader (only futures), you just need your brokers 1099-B for tax purpose.
    In a company, you should add a justification of any special accounting policy that you could use.
    You obviously need to keep records of business transactions, including proceedings of futures contracts. But, don't ask for MTM accounting treatment by IRS: You will lose your 60/40 tax treatment and being qualified as a short term trader only.
    Business tax trader, MTM recording of transactions, and MTM tax treatment are different subjects.

    Good trades!
     
    #18     Jul 26, 2017
    Overnight likes this.
  8. Overnight

    Overnight

     
    #19     Jul 26, 2017
  9. Buy1Sell2

    Buy1Sell2

    You've totally missed the point
     
    #20     Jul 27, 2017