Oh Oh, Might have to take a tax hit, got a HUGE profit thoughts?
- Thread starter professorkev
- Start date
uSe The Muney and taKE an EngLish CLass. YU migHt Have enougH fur takeng un TyPing Class too! iF U haVe any Muney left, mOve ouT ur Mummys baSement...
Traders taxation is quite complicated. If you have a stock which you have intimated and you sell it this year you will have a short term gain which will be taxed at your rate, and of course your rate will increase because of the gain. (Wonderful tax system we have, penalize those that do good!).
If you wait to sell it until you have held it for a year then the max tax is 15%, however I realize there is a time to sell and once you are past that time all sorts of bad things can happen.
I like the idea of the sep IRA, you also might consider a self directed 401K if you trade as a business.
Anyway congratulations, most people would trade the tax for the gain with you.
Jim Crimmins, Traders Accounting
If you wait to sell it until you have held it for a year then the max tax is 15%, however I realize there is a time to sell and once you are past that time all sorts of bad things can happen.
I like the idea of the sep IRA, you also might consider a self directed 401K if you trade as a business.
Anyway congratulations, most people would trade the tax for the gain with you.
Jim Crimmins, Traders Accounting
you know, it's funny, regardless of how much you make your traits never change...thus... I'm too cheap to buy a round 
)
Yeah after reviewing a few things and reading posts and IRS... I think I should have been paying quarterly. Just waiting for the CPA to call me back so I can make an appointment. WOndering too if I should be trading under an entity.
I also trade a little with the ROTH IRA, but not in volume like I do in my brokerage account.
But yes I agree, it;s better to owe the tax man than to be in a situation of not having to owe anything.
I'll report back to what CPA man tell me, I'll leave out the part where he chuckles and says Mr. IRS might be knocking on my door with a penalty receipt.
They even penalize you for OVER-paying estimated taxes, thats fucked up!
)Yeah after reviewing a few things and reading posts and IRS... I think I should have been paying quarterly. Just waiting for the CPA to call me back so I can make an appointment. WOndering too if I should be trading under an entity.
I also trade a little with the ROTH IRA, but not in volume like I do in my brokerage account.
But yes I agree, it;s better to owe the tax man than to be in a situation of not having to owe anything.
I'll report back to what CPA man tell me, I'll leave out the part where he chuckles and says Mr. IRS might be knocking on my door with a penalty receipt.
They even penalize you for OVER-paying estimated taxes, thats fucked up!
buy something that gives you large writeoffs - like invest in a couple rental properties/apt buildings that are a fixer upper - do the work THIS year using the beaten-down construction trade - and get as many writeoffs THIS YEAR as possible.
There is a LOT of good stock in foreclosure. TALK TO A REAL-ESTATE SAVVY CPA.
Then, you can also get some tax-deferred equity and have rental income to boot, in the future.
+ do you have any relatives - kids, nephew/niece
educational IRAs, prepaid college, whatever...
Educate yourself/your wife if any professional, writeoff possible courses would assist your longterm career or personal goals - often can be deducted...
Start an LLC...
There is a LOT of good stock in foreclosure. TALK TO A REAL-ESTATE SAVVY CPA.
Then, you can also get some tax-deferred equity and have rental income to boot, in the future.
+ do you have any relatives - kids, nephew/niece
educational IRAs, prepaid college, whatever...
Educate yourself/your wife if any professional, writeoff possible courses would assist your longterm career or personal goals - often can be deducted...
Start an LLC...