Tax Issues for Forex Traders (USA)

Nick77

Private
Messages
14
I'm still confused about 60/40. Does this mean you have to pay 60% of your short term profits and 40% of your long term ones? That seems like a ton. Does it matter what tax bracket your in? THanks.
 

opie

Recruit
Messages
2
Advice for Pups

:err: Don't play with matches ...
Hiding bank accounts from Uncle Sam does not mean you are trading Tax Free ... you are just deferring the inevitable knock on your door :eek:oh:
Don't think that the IRS doesn't have ears and eyes .. and means of tracking people who post on forums like this.
Don't ever make statements about hiding tax in open forums .. better to say something like .. " I heard of a guy who has a bank account in a Foreign Land ... (if you really can't hold your tongue)
There are ways to trade forex tax-free, without having to worry about someone breathing down your neck)
1. You can trade through your IRA account (not the guys in Ireland :cute:)
But there are drawbacks - such as the limits on how much you can fund your IRA, the inaccessibility once locked in the account and the exit tax.
2. Trading for a Proprietary Trading firm ... this can be done either onshore or offshore (Offshore is a lot more advantageous in profit sharing as the company will not have tax consequences itself)
In either case it is the Company that has the tax liaibility on trading profits - but there are various ways you can get your share tax free or tax deferred - through remuneration planning, deferred income, loans and capitalization back into your own company)
3. And of course you should be structuring your expenses as part of a trading business - so you can write off a lot of things.
4. If you are MAKING GOOD PROFITS THERE IS NO NEED TO HIDE FROM TAX - IF YOU KNOW THE RULES, YOU ARE ALLOWED TO reduce your tax legitimately with all sorts of deductions .. and you should be endeavouring to convert your assessable income into funds for business and investment expenses and acquiring assets which themselves have built in tax write-offs - such as Real Estate (depreciation, repairs and other outgoings), Equipement Leasing and Business Expense plus Prepayments ...

:pThe benefits of eliminating tax on trading profits can be astronomical .. a good site that has the maths comparison is Proprietary Trading | Forex | Market Traders | International |SUISSE TRADE | Risk-Free | Easy Forex | Institute | FX | Stocks | Commodities | Futures | - I can't remember the url link but you can find that from the side menu.

A final word too if you are hiding from the Taxman - they trace money movements into and account of the country, atm cards, and access registers of companies in offshore domains. The took VISA & Mastercard to court to get access to info - and they are doing the same thing to PayPal. Their computers can cross-match and analyze and determine who should be quizzed first.
So just because you have not had a call yet - don't think you are immune.
If you are making really big money then you should be thinking of setting up a legitimate overseas business and getting professional advice from a firm like Offshore Legal - Suisse Trade Group - International Tax Shelters | Advisors | Asset Protection | Hong Kong | Overseas Incorporations | Tax Planning | Investments | Accounting who actually know something about the tax rules.

It is very hard now to get onshore advice as the law has shifted to make it an offense for domestic advisers to assist clients set up offshore structures.
There is a lot of money on the table as far as Uncle Sam is concerned .. and he is dead set serious about discovering people who hide money from him. In fact it is a criminal offense -- which means it is go to jail stuff.

Sorry to rain on your parade - have a nice holiday behind bars.
 

OzWizard

Corporal Punishment
Messages
88
Are your EYE's brown??? Or are ...

:err: Don't play with matches ...
Hiding bank accounts from Uncle Sam does not mean you are trading Tax Free ... you are just deferring the inevitable knock on your door :eek:oh:
Don't think that the IRS doesn't have ears and eyes .. and means of tracking people who post on forums like this.
Don't ever make statements about hiding tax in open forums .. better to say something like .. " I heard of a guy who has a bank account in a Foreign Land ... (if you really can't hold your tongue)
There are ways to trade forex tax-free, without having to worry about someone breathing down your neck)
1. You can trade through your IRA account (not the guys in Ireland :cute:)
But there are drawbacks - such as the limits on how much you can fund your IRA, the inaccessibility once locked in the account and the exit tax.
2. Trading for a Proprietary Trading firm ... this can be done either onshore or offshore (Offshore is a lot more advantageous in profit sharing as the company will not have tax consequences itself)
In either case it is the Company that has the tax liaibility on trading profits - but there are various ways you can get your share tax free or tax deferred - through remuneration planning, deferred income, loans and capitalization back into your own company)
3. And of course you should be structuring your expenses as part of a trading business - so you can write off a lot of things.
4. If you are MAKING GOOD PROFITS THERE IS NO NEED TO HIDE FROM TAX - IF YOU KNOW THE RULES, YOU ARE ALLOWED TO reduce your tax legitimately with all sorts of deductions .. and you should be endeavouring to convert your assessable income into funds for business and investment expenses and acquiring assets which themselves have built in tax write-offs - such as Real Estate (depreciation, repairs and other outgoings), Equipement Leasing and Business Expense plus Prepayments ...

:pThe benefits of eliminating tax on trading profits can be astronomical .. a good site that has the maths comparison is Proprietary Trading | Forex | Market Traders | International |SUISSE TRADE | Risk-Free | Easy Forex | Institute | FX | Stocks | Commodities | Futures | - I can't remember the url link but you can find that from the side menu.

A final word too if you are hiding from the Taxman - they trace money movements into and account of the country, atm cards, and access registers of companies in offshore domains. The took VISA & Mastercard to court to get access to info - and they are doing the same thing to PayPal. Their computers can cross-match and analyze and determine who should be quizzed first.
So just because you have not had a call yet - don't think you are immune.
If you are making really big money then you should be thinking of setting up a legitimate overseas business and getting professional advice from a firm like Offshore Legal - Suisse Trade Group - International Tax Shelters | Advisors | Asset Protection | Hong Kong | Overseas Incorporations | Tax Planning | Investments | Accounting who actually know something about the tax rules.

It is very hard now to get onshore advice as the law has shifted to make it an offense for domestic advisers to assist clients set up offshore structures.
There is a lot of money on the table as far as Uncle Sam is concerned .. and he is dead set serious about discovering people who hide money from him. In fact it is a criminal offense -- which means it is go to jail stuff.

Sorry to rain on your parade - have a nice holiday behind bars.

WoW !!! OZ ' 'Glad he is in this BS free Zone!!'
 

Pharaoh

Colonel
Messages
19,899
I like Oz. I'll make sure to mail him a cake with a file in it when he ends up in prison. :p
 

OzWizard

Corporal Punishment
Messages
88
RE-Read the posts.... I will say it SIMPLY....

:err: Don't play with matches ...
Hiding bank accounts from Uncle Sam does not mean you are trading Tax Free ... you are just deferring the inevitable knock on your door :eek:oh:
Don't think that the IRS doesn't have ears and eyes .. ....Sorry to rain on your parade - have a nice holiday behind bars.
...... SO even the 'dolts' of the world will 'ПОНЯТЬ' (UNDERSTAND)!

1. FOREIGN NATIONAL (to USA) puts $ into NICE BANK account.

2. SAME F. NATIONAL OPENS TRADING ACCOUNT.

3. FUNDS SAID ACCOUNT.

4. TRADES ACCOUNT.

5. TAKES PROFITS BACK INTO #1 BANK ACCOUNT.

??? Where does UNCLE SAM have anything to do with this?

Geeez, get a life.....:p

OZ in "No Christmas LAND, but they rock
NEW YEARS!"

ps - Happy Holidays!!

pps - Thanks P-Man
 
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