commisions

[Bob111]

sorry for stupid question, but is anyone can tell me-is commission is deductible?
if i make 10000 profit, but spend 5000 on comissions,from what i have to pay taxes? from 10000 or profit -commisions?
one more-from tax saving point-what is best way, to reduce taxes from short term capital gains and protect your money from beig sued for something like car accident?
having a own company is best?
thank you!

 

[metooxx]

Yes and yes.

 

[Don Bright]

Originally posted by Bob111
sorry for stupid question, but is anyone can tell me-is commission is deductible?
if i make 10000 profit, but spend 5000 on comissions,from what i have to pay taxes? from 10000 or profit -commisions?
one more-from tax saving point-what is best way, to reduce taxes from short term capital gains and protect your money from beig sued for something like car accident?
having a own company is best?
thank you!

You're taxed on your "net gains" not "gross profits"...so your commissions and other costs are in essence deductible. Buy insurance to cover you from a car accident.

Don

 

[dojibear]

... and if you traded at home, don't forget to include part of the rent/morgage, electricity, heating, the internet connection, etc .... Consider it as a home business.


Cheers !!!

 

[Daal]

Quote from Don Bright:

You're taxed on your "net gains" not "gross profits"...so your commissions and other costs are in essence deductible. Buy insurance to cover you from a car accident.

Don

I believe he means if he causes a car accident, injuries someone and that someone sues him with some outrageous lawsuit(only in US!) and then he loses everything. I've heard cases of people losing fortunes when the lawyer finds out the guy has cash. I'm not sure there is insurance for that or maybe I'm wrong