Tax Benefits of Starting a LLC or Corp for Retail Trader

Quote from Bob111:

boy oh boy..i don't even know where to start. don't just walk away from this guy. RUN. what he suggesting is a sure way to get yourself into the prison. yes,i'm not kidding -PRISON. ask Mr Green,who posted here. he is a real PRO.
it's surprising to see such lack of knowledge on subject from such high income people. i'm russian guy,who happens to live and trade in US ,but looks like even i know more about your taxes and tax system and more importantly-possible consequences than you are.

keep in mind(looks like your 'lawyer' forgot to tell you ) that when it comes cheating on taxes you are GUILTY,until you proven innocent. all this scheme of yours will fall apart after just couple questions from IRS audit agent. you leased a car for your trading llc? then it can only be used for it. how you can use a car in trading related business-i have no idea. keep in mind that if you read thru this (and other threads related to LLC ,mentioned here)-i own LLC and trade thru it for many many years.
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You are right I am not as knowledgable about taxes for my situation as I should be...consequences of working 60 hours plus a week at my normal job. I haven't done any of the things he recommended - no car leases no renovations...I just created the llc funded an account and made trades... I am going to seek out another opinion - maybe tax attorney at this point..
 
Quote from Robert A. Green:

Most tax professionals don't know much about trader tax status (TTS). They mistakenly think an LLC gives business treatment by default and it does not. The LLC needs to qualify for TTS. 1000 total trades per year annualized, trade executions 3-4 days per week, average holding periods well under a month, and other factors.

Investment expenses don't allow home office and education. Get informed and don't let tax professionals give you the wrong advice on Form 8949 wash sales, trader tax status, section 475, entities, section 988 forex rules, and more.
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Thanks for the reply. I may be close to the reqs you mentioned but I did not exceed the 1000 trades. Maybe I will go for trader status in 2014...like I said...last thing I need or want is tax trouble...
 
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