NasdaqNinja, I know very little about Canadian taxes, however in the US FOREX can be taxed as capital gain (1256 contracts) or ordinary income (Sec. 988 trades) We do not believe that there is any advantage, and a lot of downside risk for the ...

FF Trader Tax Thread

Juxta14, thanks for the email. I am sorry we have never made a connection with a Registered Accountant in Canada.

FF Trader Tax Thread

The name of the game in trading is CASH FLOW. For every dollar of trading expense that you can deduct you will increase that cash flow by the same percentage as you are right now paying to a combination of the IRS and State government. You can do ...

FF Trader Tax Thread

Traders Accounting completely agrees with Jim above, you do not want a single member LLC as it is disregarded by the IRS, which throws you back into having to either file as a trader or investor.

FF Trader Tax Thread

Thanks again for the email. There is a point where it makes more sense to trade as a business. I would recommend that you go to our website and order a free Tax Action Plan. This is a free 40-page report about the various strategies surrounding ...

FF Trader Tax Thread

The time to begin to think about trading as a business is when your trading expenses, (and there are a lot of them you pay everyday thinking they are your personal expenses) get to the point that if you can deduct them you will save 1K or more in ...

FF Trader Tax Thread

Thanks for the question. You have to maintain certain levels of trading to be considered a Trader in Securities by the IRS. These criteria are found in IRS pub 550, right at the end, generally around page 70. It can be downloaded by going to ...

FF Trader Tax Thread

Jim Crimmins: The tax code is such that if you use it correctly you can save a lot of money. When anyone starts talking about offshore, and other "gimmics" an old addage that my trading mentor made to me comes to mind. "Jim if people would quit ...

FF Trader Tax Thread

I mentioned earlier to you that I was at the end of producing a new CD that will have all of the information you would ever want to know (and then probably more) about Forex trading taxes. I am looking for a few people to listen and look at it and ...

FF Trader Tax Thread

4Xpipdaddy, your question has two answers. Isn't that just like an accountant to talk out of both sides of his mouth? anyway, to take advantages of the expense portion of trading you could certainly use your existing LLC, however from the asset ...

FF Trader Tax Thread

Moonchild, What you are asking for is far too complicated to type in a chat room. I am just finishing a new CD on the taxation of FOREX traders. I will offer to you and anyone else that reads this post and responds by next Monday October 23, to send ...

FF Trader Tax Thread

I not believe that the IRS selects audit victims because of who does their taxes. That said no one but the IRS knows how they select who is to be audited.

FF Trader Tax Thread

If you are paying for someone to do your taxes, I think anyone worth their salt will charge somewhere in excess of $125 per hour, but someone worth their salt will take 1/2 as long to get things done, and also you have less worry about IRS audit. ...

FF Trader Tax Thread

One of the most off asked questions. No organization that I am aware of, but what I am aware of is that because it is not economically feasable for most accounts to take the time to learn the nuances of trading taxation, they do not do so. Most if ...

FF Trader Tax Thread

Silverpike, than you for the question. AMT taxation is quite complicated, but a trader is like any other tax payer when it comes to paying it. I can try next week to get a paragraph or two together on it and post it, unfortunately I am writing this ...

FF Trader Tax Thread

Darkstar, thanks for the question, we encourage our clients to add the commission costs into their basis when they buy and sell, thusly making their gains less and their losses more. You can then deduct when you make money and up to $3K when you ...

FF Trader Tax Thread

Ready to go — Knowing that September is not a really "hot" month for traders to think about taxes, we have launched the discussion thread, and while September is not a hot month, it should be the time that each of us is thinking of and asking ...

FF Trader Tax Thread