I don't charge fees so I can't say for sure, but my un-educated guess would be simple 1099 income for the fees. I'm not sure about percentage of gains though. Best bet -- contact a CPA.
SSB
SSB
IB Advisor Friends & Family account
- Thread starter NKNY
- Start date
Suggest you hunt around at www.greencompany.com. They may have something there. I know Robert Green has specific suggestions on how to set up such fees as the various states tax things differently. If I recall during a conference call, to which I was listening but not taking notes, he said something about getting the percentage rakeoff due to portfolio growth in one form (profit sharing as opposed to a fee) and the management fee (% of money managed) as income. One is capital gain, the other income. I think!
Since you are asking the day before taxes are due I assume this is the first time you've encountered this issue. If there is any real money involved I'd submit a Form 4868 (Extension to Filing) to the IRS along with your estimated tax, and do whatever your state requires as well. Then research the matter, make a decision, and submit your return.
Jack
Hi,
1) I have just applied for F&F account. Not approved yet. I want to know ...should I ask my clients to go online to apply for his/her own individual account (U accounts) now? r is that done through my F&F account once it is approved? If yes, how?
2) The 20% performance fee on quarterly profits...does IB automatically calculate 20% only on the new equity high?
Thanks
1) I have just applied for F&F account. Not approved yet. I want to know ...should I ask my clients to go online to apply for his/her own individual account (U accounts) now? r is that done through my F&F account once it is approved? If yes, how?
2) The 20% performance fee on quarterly profits...does IB automatically calculate 20% only on the new equity high?
Thanks
On the fees see:
http://www.interactivebrokers.com/en/accounts/advisors/advisorWrapFees.php?ib_entity=llc
Once you are approved as an advisor you can send the application to your client from within the account. It is a feature in Account Management. You can complete the application and send it for signature (and hopefully avoid delay due to errors in the application, or you can send the an invitation to the client to complete the application on line. Both methods tie the client to your account without the need for an internal transfer.
The approval process is quick. Funding takes time unless wire transfers are used because IB is overly conservative in the holds they place on ACH and check transfer into their system. ACATS are another story altogether.
Jack
http://www.interactivebrokers.com/en/accounts/advisors/advisorWrapFees.php?ib_entity=llc
Once you are approved as an advisor you can send the application to your client from within the account. It is a feature in Account Management. You can complete the application and send it for signature (and hopefully avoid delay due to errors in the application, or you can send the an invitation to the client to complete the application on line. Both methods tie the client to your account without the need for an internal transfer.
The approval process is quick. Funding takes time unless wire transfers are used because IB is overly conservative in the holds they place on ACH and check transfer into their system. ACATS are another story altogether.
Jack
ACATS are good but they can have some problems. They take about 2 weeks so there will be no trading during that time. If you are doing investment accounts then it is not a problem. If they are trading accounts then the two weeks may hurt. You must monitor for rejects. IB does not send you an email. The info only appears on the transfer page. If there is a reject you must re-initiate, IB does not.
IB will reject ACATS transfers if:
1) There are any unsettled trades (trades done within three days of the ACATS request). Submit the ACATS request at the close of business on the settlement date, You can try to finesse this by doing it one day earlier and hoping that the other firm does not react instantly to IB's request.
2) You have any penny stocks in your account which IB does not trade in. These are normally "Pink Sheet" stocks. You can check this by going to the various exchanges on IB's web site and seeing if the stocks are listed there.
The transfer time is advertised as not exceeding 10 business days. It will probably be done in 5.
The account is essentially frozen for about 8 - 10 days. I would not have anything in the account that you would be nervous about for 10 trading days.
One other thing - IB has, in the past, not done ACATS stuff over an option expiration weekend as their staff is busy handling assignments and executions. I'd initiate the ACATS request to avoid that weekend. They may have fixed things by now but one never knows.
Jack
IB will reject ACATS transfers if:
1) There are any unsettled trades (trades done within three days of the ACATS request). Submit the ACATS request at the close of business on the settlement date, You can try to finesse this by doing it one day earlier and hoping that the other firm does not react instantly to IB's request.
2) You have any penny stocks in your account which IB does not trade in. These are normally "Pink Sheet" stocks. You can check this by going to the various exchanges on IB's web site and seeing if the stocks are listed there.
The transfer time is advertised as not exceeding 10 business days. It will probably be done in 5.
The account is essentially frozen for about 8 - 10 days. I would not have anything in the account that you would be nervous about for 10 trading days.
One other thing - IB has, in the past, not done ACATS stuff over an option expiration weekend as their staff is busy handling assignments and executions. I'd initiate the ACATS request to avoid that weekend. They may have fixed things by now but one never knows.
Jack
Sal and ssb,
So, apaprently IB put the $2K into the FA account. So, can I also trade the FA acct while I wait for client's money to come in?
Apparently when I try to put in a trade it said "Buy XYZ Unknown Reason". Do I need a reason to trade? hmm..
this is really odd. it has been liek over a week since the money has been sitting in the acct.
Also, how come my ACH automatically took $ from my bank. I set it so it can debit/credit from my bank as well! What's going on here? And there's no selection either. So, now IB took another chunk of $.
please advise. thanks.
99
So, apaprently IB put the $2K into the FA account. So, can I also trade the FA acct while I wait for client's money to come in?
Apparently when I try to put in a trade it said "Buy XYZ Unknown Reason". Do I need a reason to trade? hmm..
this is really odd. it has been liek over a week since the money has been sitting in the acct.
Also, how come my ACH automatically took $ from my bank. I set it so it can debit/credit from my bank as well! What's going on here? And there's no selection either. So, now IB took another chunk of $.
please advise. thanks.
99