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Sorry, I missed the "per month." Obviously IMG Direct and US Treasuries pay closer to 5% per year... I should be realtively impossible to make a consistent amount per month. Expect some much poorer months and much better months. Also the rule of liquidity will factor in as your capital...

5% is good. To make 5% put cash into ING Direct and it is fairly secure. Or buy US Treasuries. You'd need maybe $1,000,000 capital and the 5% thereon would be $50,000 enough to pay the bills... But if a trader wants to earn say $100,000 to $300,000 per year he'd need to make 25%...

Reading between the lines here, I'm guessing that the reason you don't walk into the bank and open the account for your NV corporation yourself is because you are never in NV?? If so, then this smells like you may be about to fall for some tax evasion ploy as usually peddled to residents of...

This sounds more like a new partner who is putting in his share of the efforts. The capital is equal equity, the 10% sounds like it is to compensate for a perceived difference in time & efforts expended (and not a "tip"). Depending on the amount of capital involved, perhaps the partnership...

No, it would not and is not a tax loophole. A loophole is an anomaly or fluke (intended or unintended) in the law that legally allows the taxpayer a favorable consequence. The fact that most brokerages do not report stock option sales in no way legally relieves the taxpayer of reporting the...

First to fix my earlier typo - The bigger "problem" for many folks is finding a retirement administrator (e.g. the IRA administrator) who will allow non-traditional investments to be made. Second, While I'm not challenging the 25% rule directly, and I've heard it referred to before, I do...

Generally if a hedge fund is open to accepting investments of "pension money" they'll also be happy to accept money from P/S plans, IRAs, 401(k)'s, SEP, Kepgh etc. The bigger "problem" for many folks is finding a retirement administrator (e.g. the IRS administrator) who will allow...

Thanks for helping me start the day with a smile!

Are we missing something here? Allegedly the question explicitly asked "how much distance the bird travels after an hour," yet simple reading of the question states that it in fact explicitly asked "how much miles will the bird cover back and forth between each car after 1 hour" So it is...

Gainskeeper is an excellet tool. BUT if you just "put the net proceeds on my Schedule D net of Sc D" then you may need a CPA or EA now to smooth this whole thing over with the IRS. Any local preparer should be able to handle this for you. It is quite common. There's probably no need for a...

Exactly. The monthly brokerage report MIGHT be requested so have them ready! Since this is now in the hands of an agent with a taxpayer (no disrespect meant here) who perhaps either is not fully cooperating or does not understand fully what is expected, the IRS often will do a mini-audit...

st, reading between the lines here, perhaps you did not yet prepare a Sch D format trade matching report that has total sales that equal or exceed the 1099-B sales. If you did not yet do this, it simply will not go away until you comply with the law and get it done. If I am correct so far...

st, Virtually ANY tax practice professional can handle this easy situation. To get to the point you mention above it usually is the case that the taxpayer has ignored or not fully cooperated with the IRS. If by chance you were sent a "90 day latter" and ignored that too then you are probably...

What do you want it to be? It can depend on what you want, what you are trading and what the prop firm will actually do, whether or not they know what's correct. I'd suggest that generally if you are trading securities, using your initial capital and using the buying power of the prop shop...

IRS/SEC is not challenging prop traders as a legitimate industry se (and there's no worsening of further mottled of the tax law, IMO). The problem is (as in many cases when IRS proactive action is required) some promoters out there erroneously, out of sheer ignorance, false bravado or otherwise...

Since many prop set-ups are not tax friendly (why should they be, when the goal is trading and fees?) a prop trader might not even be allowed any retirement plan contribution. But if you are allowed, then I feel that the "best" vehicle for a younger guy (say under age 40) is the self-employed...

You may have gotten that belief listening to the hordes of refinace mortgage brokers out there. It's a shame when taxpayers get their tax education from biased parties like a mortgage loan broker or a real estate broker, and THEN go see their accountant to learn the facts. :confused: The...

Mortgage interest generally is not deductible against employee income (assuming USA resident taxes). Primary residence mortagage interest is an itemized deduction, and as such it can reduce taxable income for all sources, including capital gains.

M2M has little or nothing to do with holding overnight, other than you are more likely to have wash sales problems, which is a problem that M2M cures. Trader Status is declared AFTER the year is over. M2M for most individuals must be elected DURING the (first) year that is it elected no...

Beach Man you are thinking for the unique rules of a mutual fund that must distribute its earnings each year in order to maintain its tax-free status. For mutual funds their short-term gains are considered a dividend for tax reporting purposes. Only long-term gains on the holdings of the...