newbie help ...

[tradersboredom]

trading is just like any business venture to the taxman.

trading profits/losses is no different from any other business.

the tax writeoffs have to be cost of trading. you can't writeoff you car or even home if you trade at home as an individual trader and have no clients.

that is why you need clients. the expenses must be essential to your business operations.

excess tax writeoffs will get you an audit.

Quote from slapshot:

It is not necessary. Your "company" would still be a sole proprietership anyway.

Much more important is having an accountant that understands IRS "trader status" - how to establish it and how to keep it and not get you audited over it.

If you have trader status, you can still write off everything even remotely related to your trading even as a non-entity.

go to www.edaytradertax.com to check it out

 

[NoDoji]

Quote from Redneck trader:

fwit Sir

Check into an LLC....

If intrested leagalzoom.com can set you up pretty cheap if you find it suites you


I trade under my LLC, the LLC is controled by my Corp (i'm the janitor, trader, and coo)

Convoluted but effective once you start making money

Red, does your trading P/L run through your corp and you pay yourself a salary?

 

[Redneck]

Yes Sir

Also pays my Wife a salary - She's the CEO

Allows me to set up a 401K (no shorting but can enter long on short etf)

I can rent a space from mysely for quarterly mtg's, or hold "off site" quarterly mtgs

Set up medical account


LLC will allow you to write off training, training material and 'some' travel expenses, all costs of doing business... etal

Take Care

 

[slapshot]

Quote from tradersboredom:



the tax writeoffs have to be cost of trading. you can't writeoff you car or even home if you trade at home as an individual trader and have no clients.

that is why you need clients. the expenses must be essential to your business operations.

This is not true. If you have Trader Status, as an individual you can write off part of your rent or mortgage for home office, satellite feed for Bloomberg, cell phone for calling broker, trade magazines, books, internet access, any educational expenses, etc. etc. etc. just like any other small business.

 

[wdaniel]

Hi, everybody. I'm new in this forum, so I don't have experience about it. I just wanted to say HELLO. My name is daniel. Iwish all of you good luck in this business, and I wish good look for myself too. Haha.