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USA Federal tax law allows a deduction for many items such as you partially described. Depending on the facts and circumstances the party who saw the value of his investment/business decline may get an immediate tax deduction or tax credit, or a deferred tax deduction, or possibly no deduction...

A corporation, by definition, is a professional subscriber. So if you want to get quote information in the name of the corporation, then you may be charged higher fees. Possible answers: Use a brokerage that offsets these fees based on your trading volume. Simply do not have the...

Yes, just as you surmized, $21.40 per share is the tax basis for those shares. When you exercise the cost of the option is added to the exercise price.

Yes, if that's how you set it up, they do...

Closing an entity is not all that difficult, but yes, if you fail to take the proper steps to end the entity's trading/business activity the IRS could certainly take the position that you stated above. But more to the point, trading futures, per se, is not "better" when filing as an...

The IRS is already ahead of you. In 1983 there was a landmark tax court case that prohibits losses on one leg of a no-risk hedging transaction. And since then there were additional hedging limitations that even more specifically address the "loophole" you mentioned. More details are found...

You have it almost right... The $13,000 401K + $27,000 profit sharing = $40,000 total. Not a $53,000 total. Using the LLC taxed as a partnership, the members can deduct 100% of their health care INSURANCE. And then with the new HSA which is effective in 2004 we can expect to see new and...

The Section 31 fee rate applicable to securities transactions on the exchanges and Nasdaq changes every April 1st. There is also an interm change that goes into effect starting generally in December, January or February. So 0.0000234 should be with us until at least the end of 2004...

In your example - the tax would be 15% of $10,000. Leaving the LLC with $8,500 + the original $50,000 for a total on hand of $58,500.

An LLC's income can be taxed many different ways. Some LLCs pay the taxes themselves, most LLCs pass the tax attributes out to the owners to be taxed (if at all) on the owner's tax return. Also, there might be different tax rates for short-term capital gain, long-term capital gain, earned...

sempergumby, Actually I didn't suggest an s-corp, I used it as "an example" only. I discuss the answers to your questions at http://www.traderstatus.com/whyanentity.htm

You could certainly form a trading entity (for example, an s-corp) to better achieve trader status, but generally it is best to avoid a c-corp as the actual trading entity. While there are too many issues with c-corps as the sole trading entity, they may be useful in certain strategies using...

Limited Partnerships are used for a different type of asset protection and more for estate planning than s-corporations. One type of entity isn't "better." Each entity has its own uses and benefits. The choice should be based on the individual needs and goals of the owner and his tolerance...

Bren, CA charges $800 or more in tax (on top of other fees) for LLC and corporations, whereas a general partnership saves these costs. Since you are just starting out you might want a general parnership but if you want medial costs (on top of health insurance) you need a c-corp in addition...

for a clear :p explanation of Sec 179 ... http://www4.law.cornell.edu/cgi-bin/htm_hl?DB=uscode26&STEMMER=en&WORDS=sec+179+depreci+properti+&COLOUR=Red&STYLE=s&URL=/uscode/26/179.html#muscat_highlighter_first_match

Before you cause a real mess for yourself ...the Sec 179 deduction has nothing to do with earned income. Consider if perhaps taking a partial idea from an advisor and running with it - rather than hiring the advisor you referred to - is being penny wise and pound foolish.

a google search for "separate trading entity for the following reasons" with or without the quotes will give you a list of advangtages of using a pure-play trading entity. Whether you trade stocks or futures, the advantages are basically the same for an s-corp.

TexTrader, Capital gains and capital losses are netted against each other, so unless you elected mark-to-market under §475 for securities and/or commodities these all remain CAPITAL gains and losses and therefore are offset against each other.

Many traders have 401K/Profit Sharing plans and yes, they sock away $13,000 or more up to $41,000 a year. Search Google for the string "My Retirement Plan Options" to get more information on these. Perhaps that might help you get started.

Wouldn't an IBC owned solely by an USA citizen, resident individual be subject to IRS taxes? IRS Form 8621 and others? The 401K/Profit sharing is a good idea, then all you two might need to do is get a couple of six figure self-employed earned incomes to allow you each to fund them!