UGHH...US Taxes question

ElaineMDG

Corporal
Messages
119
OK, First, sorry, I understand this is only applicable for US traders: but I gotta ask.
I got my once-a-year phone call from my brother several hours ago. Long story short, instead of "Happy Birthday!", I got a LONG lecture about how FOREX trading is going to screw-up whatever life I have left in this world. Beginning with a lecture on scams, (as if I hadn't experienced every scale and scheme in this business over the past 5 months...and NO, NOT ONE has gotten a cent from me!!), and ending with how my miniscule account is going to disqualify me from disability, (it won't, I spoke with them MONTHS ago!!), and THEN, that dreaded word "taxes". Apparently, UNLESS I go with HIS broker and open-up an IRA with them to trade in, the IRS is coming after Me...good heavens, my brother is becoming my Father with his apocalyptic predictions!!:eek:
JUST to satisfy him, I called that broker, although I should have checked HERE FIRST!! 1. You can't trade Forex in ANY of their retirement tax havens 2. After reading reviews here and elsewhere, there's NO WAY under the sun I'd send my money to those people!!

BUT he DOES have me concerned. I can't afford a fancy tax attorney and I'm NOT about to ask my brother for help-can somebody steer me in a direction where I can find some ACCURATE information on taxes and Forex trading here in the US please?
Thanks in advance!! :)
 

ElaineMDG

Corporal
Messages
119
Thanks Pharaoh!! Supposedly, my disability caseworker is having someone call me this week-she doesn't think it's quite as scary & onerous as my dear brother made it out to be. She said she's got quite a few clients-both receiving disability and social security retirement who are trading and hasn't heard a single problem like what my brother was telling me.
Personally, I'm beginning to wonder if HE isn't going senile before our father....
I'm also looking into another possibility-a reputable prop firm I've found & who I've been speaking with for about 4 months. They pay with a 1099, apparently easier to deal with than Capital Gains, (or at least I always found it easy when I worked as an independent contractor myself). We'll see, I haven't made a final decision yet as I'm trying to get a bunch of appointments I'd postponed while doing Jarratt's class out of the way.
 

Pharaoh

Colonel
Messages
19,691
Your brother probably mentioned your interest in trading to his broker. Then his broker filled his head with horrible stories of what would happen - unless you signed up with the same broker.
 

ElaineMDG

Corporal
Messages
119
Your brother probably mentioned your interest in trading to his broker. Then his broker filled his head with horrible stories of what would happen - unless you signed up with the same broker.
It certainly wouldn't surprise me at this point.
I've found both my Dad and Brother think the same way-that if a company has a lot of advertising and is a well-known name, then they MUST be the most reputable and the ONLY ones to deal with. Trying to explain to them that 1. This isn't always, or even mostly true and 2. Your accounts being less than half of what they were a few years ago *should* tell you something-is like talking to a brick wall. My brother insists it has NOTHING to do with his broker, that his broker has explained to him that "all financial accounts across the board are in trouble right now, your lucky your only down 50%, most people have lost everything these past two years. It's a really bad time to be in the market". Despite the fact that he trades himself on occasion, he can't, or WON'T see that this just is NOT TRUE and these people are feeding him a bunch of BS to keep his acct.
Like my daughter told me last night, I'll ignore everything he says and from now on, just keep what's going on in my life quiet. That way I avoid the 2hr lectures and apocalyptic fiction....
 

Pharaoh

Colonel
Messages
19,691
Stealing a ton of money from clients is a great way to increase a broker's advertising budget.

I wonder how long until the broker tells your brother how lucky he was that it took a long time to zero his accounts. After all, a lot of people at other brokers were wiped out very quickly. ;)
 

EuroTrader

Sergeant Major
Messages
1,029
Stealing a ton of money from clients is a great way to increase a broker's advertising budget.

I wonder how long until the broker tells your brother how lucky he was that it took a long time to zero his accounts. After all, a lot of people at other brokers were wiped out very quickly. ;)
Yes, you are correct and this is why i have to choose the right broker :)
 

Olieng38

Corporal
Messages
85
You can make that income non-Forex I think via some of the methods for example after successfull trades by moving money somewhere under different goals for that. And withdraw from them. That way I think it will be more than easy for you to get and tax them in US, right ?
 

Etedus12

Sergeant
Messages
144
Olieng38, really making some good points in terms of all that, it's not strictly should be somewhat forex income in terms of all that things anyway. You can move that money to some offshore zone and then move them to US like it some other money source.
 
Top