Recent content by trader59

For all those advocating Seattle or CA: Don't forget that the markets open there before the roosters get up.

Not officially. if the IRS finds it to their advantage to have her pay tax on it, they might ask why she is paying you so much. Otherwise, any reasonable amount is not a problem. You understand that this means you managed her account (you told her how to bet her hand). I don't know the legal...

Let her file a 1099 misc. in your name to pay you most of the money for account management.

HSBC

If the k-1 you receive is on your name and Social Security# there isn't anything you can do but file Scedule E. Not legally. Not even illegally. If the firm where you trade will allow you to trade a sub-LLC, that's a different story. Then it all depends on your numbers.

I have subsequently spoken to a knowledgable accountant. It cannot be done.

from what I understand, if you declare your income as capital gains, you cannot create an IRA or pension plan. if your firm will allow you to trade as an LLC, however, you can set up a two member LLC (with a spouse) and pay yourself a management fee. That would then be earned income, so you...

Why does the Corp have to own 10% (or any part) of the LLC?

Next question is if they consider it earned income or simply capital gains. If they consider it earned income from stocks (unlikely), then it would be tax free and Social Security tax free.Having your cake and eating it too.

Does anyone know if the k-1 income from a prop firm qualifies for Foreign Earned Income Exemption, or it does not since it is a partnership distribution of a USA-based LLC?

I was told by my broker's accountant that, as a resident of a foreign country it is possible for me to take the Foreign Earned Income Exclusion on trading income, yet still not pay Social Security Tax, as it is actually capital gains. (I pay no foreign social security taxes on the income. Is...

That is a great question. The answer is that given the fickle nature of Sterling I am not sure the whole thing will work. So I am not going to risk 3k on a machine and 50k in trading capital. I will trade 100 lots for a while with a cheap machine to make sure the system works. The figure I gave...

What is the minimum configuration (CPU, Memory) for a server used to run a black box. I need a server to run a black box program (through Sterling Pro). The server (OS= Server 2003 Enterprise) will be hooked up to the data feed and I will access it remotely using Remote Desktop. The box...