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Earl Grey from Blighty here!

Discussion in 'Beginners Bootcamp' started by Earl Grey, Jul 13, 2010.

  1. Earl Grey

    Earl Grey Recruit

    Jul 13, 2010
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    Hello chaps! First time on this forum (or any come to think of it!). I'm from the UK, great site for tips etc, keep it up (love the spam section ... whoever writes the comments has watched alot of Monty Python! ... "SORRY .... I THOUght we'd started!".

    I have a question on tax in the USA, I trade in the UK where .... bless them ... the taxman isn't allowed to tax any of my profits {snigger}.

    I have a chap who wants me to trade for him in New York area but have absoloutly no idea on tax rules and regs!.

    Take me to your leader (point me to the relevant forum) please!.

    BTW you can see the back of my head at someones front door if you go on google earth! That ... unfortunately, is as famous as I am ever going to be.
  2. Forexwatchman

    Forexwatchman Sergeant

    Sep 17, 2009
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  3. Pharaoh

    Pharaoh Colonel

    Oct 3, 2007
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    I've got to agree on the comments in the Scammers Hall of Shame. Our beloved AsstModerator writes most of them, but sometimes asks me for a little input.

    I think ripping spammers is his personal anger management therapy. :D

    I'm not a tax expert, but can tell you that your question sounds a little more complicated than simple USA Tax vs. UK Tax.

    No matter what, get the guy to open the account in his name and to sign an LPOA. This prevents any chance of the broker suddenly noticing that any of their rules were violated and canceling profitable trades. This also keeps both of you on the right side of US and UK law (and whatever law the broker is supposed to be following).

    I think the trader will need to pay taxes on whatever profits are made, minus the expense of whatever you are charging him. Since your money will be considered as commission for trading success instead of personal forex profits, I think you might end up getting taxed on it.

    You might also want to check and see if the FSA will require you to register. They probably have an exemption based on total cash value or number of accounts, but it's a good idea to check. There's no point in making money if you end up paying it all in fines for rules violations.

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