Tax help/info' please.

P

plumber68

Hi,

hate to jinx myself, but here goes.



This year I'm up about 20K trading the eminis. We're a family of 5 with one income from a reg job of about 40K. (we pretty much have "0" tax liability from the reg' job)



What do you guys believe the best tax way is ? To set up a business to claim computer costs, Internet, CNBC etc, or just to file capital gains (seems the easiest way for me)



I've been here in the past so not getting too excited, up good for a few months then just change my whole approach and mess up (no one to blame but myself) Hopefully I'm past that now (we'll see:-)



But lets also say looking ahead, and possibly look to make say from 20K to 40K a year, keeping the same one reg' job income, should we just stay capital gains, there's really not that much costs involved each month with my trading style. Just one computer, DSL, IB and IB charts and CNBC.



Any info' would be much appreciated, even if it just gives me some ideas or understanding if i see an accountant down the road.



Thank you as always for your help.
 
Quote from plumber68:

Hi,

hate to jinx myself, but here goes.



This year I'm up about 20K trading the eminis. We're a family of 5 with one income from a reg job of about 40K. (we pretty much have "0" tax liability from the reg' job)
More...

So you can support family of 5 on 60k income? Wow, I need to move to your state. :D
 
Futures trades are reported on Form 6781 (to get 60/40 long term/short term treatment) and appropriate numbers are then transferred to Schedule D.

You will have to request Form 6781 and instructions or print them off of the IRS website.
 
Quote from plumber68:

Thank you again, if I'm understanding rightly I'll also be in the lower capital gains tax range ?
More...

If your total income is low enough, only for the portion that is long term capital gains. Short term capital gains are taxed at your regular tax rate.
 
Hi, and thank you again.



IB, if I remember from last year will send me the (well I print it out) Form 6781 then I just have to enter numbers into Tax cut and it'll take care of the 60% long term gains and 40% short term ?



Anyway, just the fact from your answers that it does seem filing "Capital Gains" instead of trying to set a bussiness up for dedutions etc is a nice simple way - I like :-)
thank you.
 
Quote from plumber68:

Hi, and thank you again.



IB, if I remember from last year will send me the (well I print it out) Form 6781 then I just have to enter numbers into Tax cut and it'll take care of the 60% long term gains and 40% short term ?



Anyway, just the fact from your answers that it does seem filing "Capital Gains" instead of trying to set a bussiness up for dedutions etc is a nice simple way - I like :-)
thank you.
More...

I've never heard of a broker providing Form 6781 to customers. Brokers report income and loss on Form 1099. The customer/taxpayer is responsible for transferring the information from the Form 1099s to Form 6781 and Schedule D.

Go to http://www.irs.gov/pub/irs-pdf/f6781.pdf to see Form 6781 for 2007.
 
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