whats involved

watchdaride said:
well i am profitable and LLC lets you write off expense and when profitable i assume there is some tax advantage .
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There are rules on what you can write off against trading and capital gains profits. I do not beleive an LLC exempts you from those rules.

If you already have a car business my advice is for you to get an accountant anyway. You might be surprised all the deductions you are entitled to.
 
newwurldmn said:
There are rules on what you can write off against trading and capital gains profits. I do not beleive an LLC exempts you from those rules.

If you already have a car business my advice is for you to get an accountant anyway. You might be surprised all the deductions you are entitled to.
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Agree, use some of those trading profits and hire a pro, easy.
 
watchdaride said:
SO if i dont register a company and just report it as income i can still apply as a trader status . I thought you had to do that through a registered business company ?
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There are a few tests for trader tax status and one of them is minimum of 720 trades per year....



ps you'll be well served to contact a CPA that understands trader tax, 99.99% of CPAs have no clue.
 
https://www.elitetrader.com/et/threads/option-trader-tax-status.304156/#post-4356011

As a Future trader (only futures), you just need your brokers 1099-B for tax purpose.
In a company, you should add a justification of any special accounting policy that you could use.
You obviously need to keep records of business transactions, including proceedings of futures contracts. But, don't ask for MTM accounting treatment by IRS: You will lose your 60/40 tax treatment and being qualified as a short term trader only.
Business tax trader, MTM recording of transactions, and MTM tax treatment are different subjects.

Good trades!
 
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