Estimated Taxes for the Career Trader

Quote from retaildaytrader:

Like I said, I dont know the exact laws in that regard
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Yet you keep digging a deeper hole for yourself.

The distinction between those who actually pay taxes on trading profit and those who hope they might pay taxes someday is obvious in this thread.

If you had ever been faced with estimated taxes you would display more knowledge on the subject. Or perhaps you do not understand the meaning of the word "penalty". I am guessing both.
 
Quote from retaildaytrader:

Like I said, I dont know the exact laws in that regard, but I do know there is a difference between unintentionally not paying taxes and an intentional act of not paying taxes. Basically, you are saying that you are purposely choosing to pay your taxes at the end of the year against IRS regulations, but willing to pay the penalty.

Whether the IRS is ok with that or not or if you have consulted with counsel or not, I still would not be admitting to such an act on a public message board especially when it does not cost anyone a dime to report the matter and when a reward is provided to the people who report you.

It would not cost me much to print this out and send it along with a letter of my observations and conclusions to the IRS investigation division in Fresno, CA. Now what you might be doing is legal, but it would take considerable time and expense away from you if they chose to investigate the act. You would have to hire an attorney and it would be a very stressful situation. Therefore, I would never admit to anything like what you just admitted to even if I were confident what I was doing was legal and had the opinion of counsel backing me up.

You can heckle me all you want, but thats what I would do in this situation. I like to keep myself out of situations which might be escalated to hiring an attorney which is very costly and stressful.
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isnt it nice how you start a thread on elite about taxes and when people try to educate you you end up threatening them. i wonder why people even try to help people like you.

there are provisions in the tax code for people who have irregular income not having to pay quarterly taxes. people who fall in this catagory would be farmers,seasonal fishermen,seasonal construction owners ect. while traders are not specifically mentioned it could be argued that they also have irregular income.
 
I am not threatening anyone, but trying to help you guys out. When I started this thread, I did not expect for people to be admitting how they avoided certain taxes within the thread so I thought I might cut it off right there before it went any further.

I'm a bit older then you think and have my own experiences with the IRS. There were times where I was investigated, but did nothing wrong. There were simple mistakes on the return that could be justified, but it took quite a while to sort the mess out with lawyers involved. I tried to handle it myself at first and made the situation worse.

Back a very long time ago when I was in my 20s, I knew a revenue agent in his 20s who was very aggressive and only seemed to care about getting people into trouble. Back further then that, I remember revenue agents coming to my parents house to go over irregularities in their taxes. It was a rude awakening to see how these guys really work.

I thank you for the education, but I had to cut you guys off before you open your mouths and get yourself into more trouble then what you bargained for. I have my own experiences with the IRS and once knew people that worked for them. I would never tell anyone how I do my taxes or admit to purposely not doing something I was supposed to do on a public message board. I know the results of such actions and it is time consuming and costly. I would never mess around with such matters as serious as that.

Quote from vhehn:

isnt it nice how you start a thread on elite about taxes and when people try to educate you you end up threatening them. i wonder why people even try to help people like you.

there are provisions in the tax code for people who have irregular income not having to pay quarterly taxes. people who fall in this catagory would be farmers,seasonal fishermen,seasonal construction owners ect. while traders are not specifically mentioned it could be argued that they also have irregular income.
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Retaildaytrader, believe me, I'm very aware of what I say (and how I say it) on public forums. It sounds like your past experience with the IRS has hampered your ability to think clearly.

Let me try to help you out here. The purpose of the IRS' reward program is to capture large (I think $2 million+) tax EVADERS. The reward is offered because the IRS stands to recover a large sum of back taxes. Because I pay my taxes each and every year--with interest--there are NO back taxes to recover and nothing whatsoever to be gained by the IRS coming after me. Therefore, if you were to "turn me in" (impossible without good evidence, BTW), your only reward would likely be extended silence followed by a loud "click." Knock yourself out.

Here's another dirty little secret: I usually file for an extension. :eek:
 
Quote from retaildaytrader:
....."Estimated Taxes"......
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1) You can try to "underpay" taxes for the first, second and third quarters and then "overpay" during the fourth quarter to balance things out and then even-up when you complete your final return.
2) You could trade in a normal/taxable account until you've earned enough living expenses for the year and then trade in an IRA account for the rest of the year as a means of reducing taxable income and boosting your retirement account. :cool:
 
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