Are taxes eating up your profits too?

[rubinageniro]

tax residency applies regardless of the broker you use or where the broker is located

You sure? Because I have heard that traders who use brokers in the tax-friendly nations are able to save more comparatively! However I’m not sure myself and so am here

 

[rubinageniro]

When you go deeper into that question, poeple come with all kinds of ideas and reasons why to do so. The best one i heard so far :
,, What's the point of paying it if the goverment will waste it anyways ? "

And you're listening like ...

I just simply wanna know if there is a genuine way around it

 

[rubinageniro]

I trade as a business so write off alot of expenses against the income. VPS, all tech, subscriptions, home office, insurance for the family (which is around 24k per year). Pretty much everything trading related is expenses through the corp. Especially with insurance it's easy to have over 50k annual qualified expenses to bring down the taxable income from trading. There's other things you can do too

Mortgage and insurance are 2 things I’m writing off against as off now, but would love to not give a penny to my govt here, it’s all a sham

 

[rubinageniro]

"Work" vehicle, office space, petty cash, business lunches, vacations (company related travel). Pretty amazing the amount of shit you can attach to a company.

I don’t work for any fancy company so can’t do that.

 

[rubinageniro]

If you take up residency here in the UK you will not only benefit from one the world's strictest regulators to monitor what your broker does but if you trade using spreadbetting you will never pay any tax on your profits.

Taking residency in UK! Now that’s a whole different deal

 

[rubinageniro]

You can write off conventions - isnt there a trader convention in vegas each year?

You can also open a 501 c 3 as a wildlife preserve, donate land to the Non profit, and write off the taxes that way

Or open a different business like "trader consultant" and do it that way. There are ways to game.

IRS during an audit doesnt go and check to make sure you are telling the truth, they are lookin to see if its reasonable expense. Plenty of ways to funnel trader profits so you dont have to pay taxes or pay very little than what would normally be your tax bill.

Stuff like donating land and all, now I’m not sure I can be in the league of that big a game

 

[tomorton]

Taking residency in UK! Now that’s a whole different deal

Its the most charming and friendly place. The weather ain't so good (you'll need a pullover and an umbrella often in summer) but Europe is just a few miles away and easily reached.

Note that London is in character a different country to the rest of the UK.

 

[yana hansen]

Rofl, I run a business. Have friends that have families that run businesses that have been audited.

A "trader" can funnel his money into an actual business or "charity" to skirt taxes. The IRS is not going to be tracking down people i went to "lunch" with. Thats the point of a good CPA, to find creative ways to decrease your taxes and to make sure there is some form of reasonableness and you are covered if audited.

Know a family that "donated" 1400 acres in order to save a decades+ worth of taxes. You can live on conservation land.

But if you are going to sit here and say a person making trader money cant figure out ways to decrease their tax bill in these types of creative ways then you are 100% wrong.

Good point mate.

 

[Sig]

Rofl, I run a business. Have friends that have families that run businesses that have been audited.

A "trader" can funnel his money into an actual business or "charity" to skirt taxes. The IRS is not going to be tracking down people i went to "lunch" with. Thats the point of a good CPA, to find creative ways to decrease your taxes and to make sure there is some form of reasonableness and you are covered if audited.

Know a family that "donated" 1400 acres in order to save a decades+ worth of taxes. You can live on conservation land.

But if you are going to sit here and say a person making trader money cant figure out ways to decrease their tax bill in these types of creative ways then you are 100% wrong.

If you run a real business then all I can say is good luck when you get audited! I'm sure those IRS agents will be understanding when you tell them they're "100% wrong" and that you don't have to show any support for the "business lunch" you wrote off every weekday for the past year. Let us all know how it goes.

 

[Bugsy]

I don’t work for any fancy company so can’t do that.

The size of your business is irrelevant to the tax shelter you wrap your business in. You can be a 1 person business that you incorporate and utilize the tax advantages afforded under that umbrella.