To all non-resident alien prof daytraders
- Thread starter chs245
- Start date
Originally posted by chs245
I recently started to trade professionally (ie Series 7 licensed and in a US LLC) and have determined that my status for US tax purposes is "non resident alien".
I was wondering whether there are some people on ET who are in the same situation and willing to share their experience.
In particular I wonder whether for US tax purposes we are considered to have a business activity in the US and as such are subject to US income taxes.
Also, I read that if you would like to use mark-to-market accounting, you have to notify the IRS by the 15th of April in the year for which you are planning to apply for that status. Can anyone confirm that ? If I missed that deadline, would that mean that I can't benefit from the "Trader in securities" status THIS year
Many thanks for any inputs !
Oliver
An LLC is a pass through entity, I don't believe you have a US tax liability.
Thanks for that clarification. I am indeed looking for a (european) country without or with low taxation on gains from futures trading. Of course there are Andorra and Monaco (they do not have any taxes on personal incomes), but both are very small - perhaps to small to live there for more than 183 days per year...
Candidates I found in literature or in this board are Belgium (special tax rate of 0%) and the Netherlands (1,2% on net capital). Still acceptable are the numbers I found for Ireland (20% tax rate) and Portugal (10%). But I am not sure if these numbers really apply for gains from futures trading.
What I know for sure is that taxation is very, very unattractive in my country as the normal and quite high tax rate applies. Some years ago there have been no taxes on futures trading in my home country Germany but these times are gone now...
Markus
chs245,
Did you ask Don Bright your question? I would suggest you ask Don Bright(he has alot of experience in accounting) and you are with his firm. I would agree with metooxx , that you should have a US accountant(or at least employ one as a consultant) to help you on tax issues and questions for foreign traders.
Before trading in the US markets, I would meet with a local professional in your area to see how short term trading is taxed. In some countries, the tax rate for short term trading may be much higher than investing .
Gene Weissman
Lieber & Weissman Sec., LLC
gweissman@stocktrade.net
Did you ask Don Bright your question? I would suggest you ask Don Bright(he has alot of experience in accounting) and you are with his firm. I would agree with metooxx , that you should have a US accountant(or at least employ one as a consultant) to help you on tax issues and questions for foreign traders.
Before trading in the US markets, I would meet with a local professional in your area to see how short term trading is taxed. In some countries, the tax rate for short term trading may be much higher than investing .
Gene Weissman
Lieber & Weissman Sec., LLC
gweissman@stocktrade.net
Markus- If you are one who can think and act 'outside the box' as they say, I may have some ideas for you. However, while not necessarily illegal yet, they do not bear discussion here, in e-mail, or probably even over the phone in these trying times. E-mail me at paumaluz@yahoo.com for an outline of the situation and a snail mail contact.
For more info on my paranoia, see any number of sources such as Ascot Advisory.com, the Sovereign Society A-letter, International living.com. In summary, there will soon be no tax havens in the EU, and, as a NR Alien, the IRS will most likely be keeping 30% of your trading gains, with the onus being on you to get it 'refunded'.
For more info on my paranoia, see any number of sources such as Ascot Advisory.com, the Sovereign Society A-letter, International living.com. In summary, there will soon be no tax havens in the EU, and, as a NR Alien, the IRS will most likely be keeping 30% of your trading gains, with the onus being on you to get it 'refunded'.