Best Tax set-up for Futures trader???

brandon12,

Yes, I saw the thread about the new ib's sched d. Traders are loving it.

My problem with just including a note is that I don't think it's sufficient enough to prevent an audit. I plan to write off every possible deduction that I can think of, ie rent, utilities. Everything that is as legitimate as possible in order to see if it's possible to get some retro NOL refund. I want something that when the IRS sees it, they won't bother even contacting me. One thought was sending the IRS a copy of IB's monthly statements. That would definitely prove I was trading full time.
Quote from brandon12:

lwlle very good question. how does the irs know if a futures trader is full time when he only recieves a 1 line p@l? i'd include a note saying you trade full time if you write off any exp's. as far as mtm goes i file mtm for stocks only and specify i'm not mark to market with futures. ib now includes a sch d for every trader so no more line by line accounting headaches for stock traders. i think every broker will do this soon
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Quote from Nickels&Dimes:

...For instance, anyone know what rules apply to US futures traders living in Europe? I am thinking about moving overseas for a while and wonder if I would have to do anything different.
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Everything is the same as if you were living in the U.S.

Make sure you fill out that IRS change of address form. :cool:

However, if you begin paying taxes as a resident or citizen (dual citizenship) of another country...find yourself a decent U.S. tax accountant because of potential dual (double) taxation problem.

Most likely the IRS will allow an equal credit for tax paid in another country.

Also, because your going to be living abroad...you have an automatic extension on filing your income tax return.

The tax accountant can be very helpful expecially if you buy property, home, car et cetera in the foreign country, get married to a non U.S. citizen and/or have children that are not U.S. citizens.

Essentially you have dependents and your financially supporting them...the paperwork and rules gets too messy if you try to figure it out on your own as a Futures trader that trades fulltime.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/27/AR2006062701022.html

Mark
 
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