Capital Gains?

A cut is just a street term for bonus. What is the Title on the account number and have they associated a tax id number to it?
 
xandman said:
Ah, that is the answer to the later question. You have been trading their book. Just like a blue chip Wall Street trader who makes a nice bonus from the banks coffers. It's all Salary. Why do you think you have a Capital Gain?

Is your name on the brokerage account? Something ain't kosher here.
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My name is on the sub-account, which the contract states is for accounting purposes only. All stocks and capital is owned by the broker.
 
Well, you have the contract in hand. Choose the CPA that will file everything as Earned income/Salary.

CPA will have to defend themselves in court the filing is wrong. I don't think HR Block $30 Audit Insurance will cover you.
 
Basically I trade their capital in the sub-account created when I applied. The account, capital and stock purchases are their property. I was just issued a sub-account with buying power.

So say I make $1K Monday then lose $500 Tuesday. The Net P/L is $500 and that's how much I'd get paid, before fees from the broker. I'm payed 100% commission unless I use more then $100K buying power.
 
xandman said:
Well, you have the contract in hand. Choose the CPA that will file everything as Earned income/Salary.

CPA will have to defend themselves in court the filing is wrong. I don't think HR Block $30 Audit Insurance will cover you.
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I have only spoken to 3 people. An inactive CPA SCORE mentor told me it's considered ordinary income since I am a contractor to the firm and they pay me. If the profits were going directly to an account in my name, it would be considered otherwise. However my friend whose an accounting student says otherwise since my pay is based off the trading of stocks. Then my Grandfather (retired cost estimator/accountant) says the entire ordeal is illegal because it's offshore? I just started this a few months ago. Not very educated in tax law.
 
I had to deposit $2500 to open the sub-account to cover any losses the firm gets from my trades. However in the section, it says this.

To secure Your obligation for such Trader Losses, and secure the professional services of the Company, You must deposit into the Trader Sub-Account a minimum deposit of $2,500.00 prior to any Stock Trade. The equity does not represent ownership, interest, or any investment by the Independent Sub-Contractor
 
This.

pleckerchris said:
An inactive CPA SCORE mentor told me it's considered ordinary income since I am a contractor to the firm and they pay me. If the profits were going directly to an account in my name, it would be considered otherwise.
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