CME IOM Membership tax implications for an Individual Member

algofy said:
If you own a seat you have to pay SE tax, full stop.
More...

Incorrect.

Where does it say so? Quote some tax code or regulation.

The only person who says what you say is Robert A. Green from GreenTraderTax. He's got articles splattered all over the internet saying exactly that. You work for him? Someone needs to tell him to stop spreading misinformation.
 
It's very clear in the IRS rules that if you are a member of an exchange that you have to pay SE taxes.

I've been audited on this before and thankfully I did it correctly.

There's no financial benefit to not paying them. If you don't pay SE you will have to pay Obamacare tax instead because you are calling it passive income. Which is the same rate.

This is a well known, clear cut topic that has been answered correctly for you. If you continue to argue otherwise you should be banned for intentionally spreading false tax information which could mislead people and really get them in trouble.

No. It's not my responsibility to prove or provide links. These are well known facts that are well established.


chris500 said:
Incorrect.

Where does it say so? Quote some tax code or regulation.

The only person who says what you say is Robert A. Green from GreenTraderTax. He's got articles splattered all over the internet saying exactly that. You work for him? Someone needs to tell him to stop spreading misinformation.
More...
 
chris500 said:
It's not tax advice. The CME/futures exchanges and the CFTC determine what a dealer is. They're in charge of registering them. The IRS goes by what they say. There is no special IRS definition of dealer.

1402(i)(2)(B)
"The term “commodities dealer” means a person who is actively engaged in trading section 1256 contracts and is registered with a domestic board of trade which is designated as a contract market by the Commodities Futures Trading Commission."

The key word is "registered". Registered as a dealer. Dealers have to register. Seat owners do not have to register.

It's funny that you're doubting what the CME says. I contacted the people directly involved in buying/selling/approving memberships. Not some random intern.
More...

The pertinent parts are in a section you aren't quoting. You are not a dealer.
 
garachen said:
It's very clear in the IRS rules that if you are a member of an exchange that you have to pay SE taxes.

I've been audited on this before and thankfully I did it correctly.

There's no financial benefit to not paying them. If you don't pay SE you will have to pay Obamacare tax instead because you are calling it passive income. Which is the same rate.

This is a well known, clear cut topic that has been answered correctly for you. If you continue to argue otherwise you should be banned for intentionally spreading false tax information which could mislead people and really get them in trouble.

No. It's not my responsibility to prove or provide links. These are well known facts that are well established.
More...



Dealers can be a member of an exchange.
Non-dealers can be a member of an exchange.

How's that difficult to understand?

Dealers pay SE taxes.
Non-dealers do not pay SE taxes.
 
garachen said:
The pertinent parts are in a section you aren't quoting. You are not a dealer.
More...

What pertinent parts?

Yes, I'm not a dealer. Therefore, not subject to SE taxes.

If you're a dealer, then when the IRS audited you it found no problems because you were paying SE taxes.
 
chris500 said:
The only person who says what you say is Robert A. Green from GreenTraderTax. He's got articles splattered all over the internet saying exactly that. You work for him? Someone needs to tell him to stop spreading misinformation.
More...
Absolutely, trust a random jackass on the internet over a CPA who puts his name, reputation, and livelihood on the line when he publishes tax advice. And by the way, that reputation it pretty good. Yours on the other hand......
 
Sig said:
Absolutely, trust a random jackass on the internet over a CPA who puts his name, reputation, and livelihood on the line when he publishes tax advice. And by the way, that reputation it pretty good. Yours on the other hand......
More...

Okay, you're calling me a jackass.

No need to get emotional. Relax.

I wasn't attacking Robert A. Green. I'm pretty sure he's a good guy with good intentions. Everybody makes mistakes every once in a while. No big deal.
 
chris500 said:
It's not tax advice. The CME/futures exchanges and the CFTC determine what a dealer is. They're in charge of registering them. The IRS goes by what they say. There is no special IRS definition of dealer.

1402(i)(2)(B)
"The term “commodities dealer” means a person who is actively engaged in trading section 1256 contracts and is registered with a domestic board of trade which is designated as a contract market by the Commodities Futures Trading Commission."

The key word is "registered". Registered as a dealer. Dealers have to register. Seat owners do not have to register.

It's funny that you're doubting what the CME says. I contacted the people directly involved in buying/selling/approving memberships. Not some random intern.
More...


"domestic board of trade" = CME, CBOT (Chicago Board of Trade), NYMEX, etc...

If you buy or lease a seat at one of the above exchanges you are registered with that particular exchange.

This is different from being registered with the NFA as a commodities dealer. There is a question on the CME application that asks if you are registered with the NFA, that is probably what the person you spoke to thought you were referring to. You do not need to be registered with the NFA to buy or lease a seat.
 
chris500 said:
Okay, you're calling me a jackass.

No need to get emotional. Relax.

I wasn't attacking Robert A. Green. I'm pretty sure he's a good guy with good intentions. Everybody makes mistakes every once in a while. No big deal.
More...
Wow, you are 100% wrong and I'll prove it. Give me a bit of time.
 
You must log in or register to reply here.
Back
Top