Question for full time swing traders

Exigent · September 3, 2009, 9:16am

What do you do when tax time comes? Are there any ways to dodge paying excessive taxes (legally)?

I plan on eventually doing it full time while my wife works full time but am unsure how that goes. TIA!

profitforextrader · September 3, 2009, 10:21am

do you live in the UK?

lee

Exigent · September 3, 2009, 10:23am

oops, forgot to add that…I’m in the States.

Are most of the people here across the lake?

system · September 3, 2009, 10:47am

Taxation on forex is complicated as you have to rules are based on how what you claim (section 1256 or section 988 of the tax code) and what type of forex products you are trading (spot, options, futures, forwards, etc.) and the size of your account…

I found a very informative page on forex taxation in the US here :greencompany.com/EducationCenter/GTTRecCurrency.shtml

Exigent · September 3, 2009, 11:07am

Thanks for the link, but I hafta wait till after work to read it :eek:

Would there be any benefit from forming an LLC and name the company Exigent’s Happy Spot Trading Co.?

Merchantprince · September 3, 2009, 12:18pm

A couple weeks ago there was a tax thread here. I followed this link and it seemed to give a good idea for U.S. traders:

How to Deal withTax Implications for Forex Currency Trading

Exigent · September 3, 2009, 12:29pm

Thanks, Merchantprince, that is a huge help!