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As you may realize, a way to get out of the wash sales rule is to elect M2M for an active trader. And a passive friend/family member with his own linked sub-account does not qualify for IRS purposes as an active trader... no matter how many trades are run through the friend's account...

Each State has its own rules for allocation. These are usually based on a weighted formula using the amount of compensation paid, the amount of sales revenue, and the amount of hard assets in use (owned or rented) such as offices and equipment. For any business big enough to maintain 50 or...

While not all 50 US States have corporate income taxes - the corporation, if it had a physical office in each of the 50 States, YES, that would likely be enough nexus in each State individually to make it liable for any applicable income taxes, sales taxes, property taxes, and so on. There...

Many brokers offer a download that either does all the work (IB and Ameritrade for example) or that with a little work with a spreadsheet for open positions on December 31st can be just as good. Granted if you have huge numbers of long-term holdings with stock splits, reinvested dividents...

Most anything's possible... but that answer is not really appropriate, because the question is not applicable, really, to a family owned trader LLC.

IRS Form SS-8 is a starting place if you are not sure if you're talking about employees or independent contractors.

In all States that I know of YES, W-2 employees result in their employer paying UC tax. Some States might allow a little withholding from the employee to cover some of this UC tax. The rates vary from 1% to 10% for the States and the IRS UC rate is 0.8%. All of these are based on some low...

Just because for IRS purposes an entity usually passes thru all tax attributes, it does not necessarily follow that the State and Local gov't will not be extracting what they feel is their fair share at the entity level. Most every State has fees due to the Secretary of the State (so if you...

You have no argument from me in that situation!

IMO the tax avoidance when it comes to the State location of an LLC is not IRS income tax avoidance. It is State taxes and fees that are the issue. If an entity has nexus it has two obligations: #1 is to file income tax returns as appropriate for the entity and #2 is to register with the...

Well that's a specific question best addressed with your own tax advisor... but generally it is where the sale is consummated i.e. where the salesman is constructively while the sale is made. That would probably be in the office where the telephone and the email/computer are located. Where the...

Consider that perhaps you might not be availing yourself to all the income tax benefits available to you: No office in the home deduction. No realtime quotes/charts being ported into your location in the non-Delaware state. No fixed asset deductions: furniture, computer, motor...

Vinny, if this was directed to my earlier reply... For IRS self-employment and for IRS income tax purposes it generally makes little difference as to local zoning etc. Local zoning may certainly have a bearing on any applicable State and Local taxes or fees assessed. Technically most...

Sorry, somehow part of my typed reply got deleted: Ques. Are self-employment taxes due on income earned by an s-corp or a c-corp? Ans. Generally yes to some extent, but not necessarily on all of the income. The following are not subject to self-employment tax: S-corps allow reasonable...

S-corps allow reasonable "non-dividend" non-taxable distributions to shareholders for the return on capital invested, IMO. C-corps allow "dividend" 15% taxable distributions to shareholders for the return on capital invested.

IRS law is not really based on State law in this regard. A manager-managed LLC, assuming you chose to set it up that way, would likely, by definition, attribute income to the manager for management services, and hence that likely would be self-employment income, assuming the manager was a...

The tax law on LLCs is flexible. Generally anything REASONABLE goes. If you are actively involved, full-time, doing the day-to-day operations of the Medical Staffing business then, IMO, reasonable might mean most or all of your income should be subject to self-employment taxation. On the...

A main reason for forming an LLC is the asset protection and putting up a road-block against charging orders. Another reason is to allow tax planning with regards to self-employment (FICA taxes) since LLCs can be structured to have self-employment earnings and/or not to have self-employment...

I forgot to mention WHERE to find all these software packages. Simply Google [ traderstatus software ] and the results will lead you in a few minutes to numerous programs such as the $50 "Simply Track's" Wash Sale Schedule D Generator Software and about a dozen others. Please note that I...

TradeLog type software for 90% of taxpayers is totally unnecessary expense if the purpose is merely after-the-fact income tax formating of the trades. Whether you file as an investor, a trader or a M2M trader makes absolutely no difference in that end of the reporting requirement. Depending...