For us newbie’s. Will this be questioned

[Evad]

For us newbie’s.

My question is simple really.

After reading a few posts namely the “how not to lose your profits” and I might add very informative with regards to the MM skills some people employ.

You people (I.e. CAS, Xtremeforex, shr1k, ruilima22) make us all feel “oh wow how hard is this to succeed” (not really) but wow the volume of information is just mind boggling. U are smart people.

Like when I first learnt to drive and my old man asked me to change down gear not put into neutral (use the engine) then check both ways, don’t forget to indicate!!! All as we were coming up to the corner. I stalled the car and got out in anger (lucky it was a quiet street). But more importantly, got back in and tried again. Now it is second nature.

What I wanted to ask? Is about tax.
I have asked this once before. But…

Can u “humour” us newbie’s. I personally love to hear success stories and would love to hear that someone has pulled 100k or more from this would be fantastic, inspiring and motivational all at the same time.

Back to tax.
Say I had a 5k account. And turned it into a 10k account and followed all the MM suggestions given in the thread labelled above to take some profit and spend it, or put it to use in other areas. Or take my original investment as Ruilima22 suggested.

How does this get taxed? (PLEASE I KNOW I CANT ASK FOR TAX ADVICVE AND SHOULD SEEK LEGAL COUNCIL AND A PROPER ACCOUNTANT)

BUT

What do u guys do?

Do you pull down (say u had 100k) only half at certain times of the year to minimise tax. What? How does it work? Does anybody have any real life examples? The financial year is off importance here I assume?

If I were to take my initial investment ONCE. ( I AGREE KEEPING IT ALL LEGAL AS IT IS NOT WORTH GETTING CAUGHT AND I HAVE MORAL STANDARDS) would this been “seen” and have to be taxed? I know the answer is yes but read between the lines.

On top of that what if one was to bring down 5k 13 times a year? Surely someone (government) would want their cut?

I know my answers and know I need an accountant to give me the solutions based on what, how much, is it under a business? Whatever.

Was just looking for some examples and maybe a “gloat” from someone successful in the Forex game. Tell us some of the stories and the strategies please.

PS: not wanting to ask too personal about tax as I understand there is always a “cash” element to a business and what does and doesn’t get “declared”. So I am not trying to ask those questions. For all you know I am the “tax man” posing.

Just really want some life stories if anyone is keen to share. And maybe about how they structure things.
Cheers

[kockneerebel]

Hi Evad
Some traders like to complicate things and make this wonderful business mind blowing for novices. It can be as simple or as hard as you want to make it. With regard to your tax question I cannot help, I am in the UK and currently am fortunate that no tax is payable on “winnings”

best regards

[ruilima22]

my opinion about forex is that is very simple and the thing that make people lost more money is the ability to complicate forex trading… so keep it simple and follow the rules and you´ll made your 100K

about tax… all the countrys have different rulles. in my country there´s no taxs for forex so…is just spend

[simbafx]

I am in the UK and currently am fortunate that no tax is payable on “winnings”

In the UK this applies only to profits earned through spreadbetting accouts, profits generated elsewhere are subject to both income and capital gains tax.

[Shr1k]

As far as taxes talk to a professional if want to get accurate info. If you are in the USA you will pay taxes.

For a new trader I include myself in this group The most important thing to understand when you are learning is MM. A completely random trading strat will drain your account slow enough for you to get some experience, if you use conservative MM. I don’t recommend a random strategy but if you try it for a short time( I did) you will see how good MM will protect you.

[simonjf77]

In the UK this applies only to profits earned through spreadbetting accouts, profits generated elsewhere are subject to both income and capital gains tax.

What is a spreadbetting account? can you not spreadbet with most brokers or is it only what the govenment decides is a spreadbetting account?

[kockneerebel]

Hi Simon
spread betting companys in the uk are considered as a form of bookmaker and thus falls under the mantle of gambling

[simonjf77]

So if a broker is UK based it is considered a bookmaker but if its overseas then its tax payable?

just as well I haven’t made my first million yet:D as I use Oanda

[kockneerebel]

LOL second million is just as easy or hard to make

[R_Carter]

I love your optimism… talking about the tax side before your pockets are bulging with cash.

When your into seven figures annually there are plenty of exceptionally gift accountants that would just love your business. You will be taxed in the country you are considerd domestiled but that doesnt mean you necessarily need to live there. So pick a counrty wisely… there are several who wont charge you more than 10% tax and at least one that wont charge you tax at all.

Or you can form a company and look to the above countries… the possibilities are endless. I hope you make it and have fun doing the two step with the tax man.

[simbafx]

So if a broker is UK based it is considered a bookmaker but if its overseas then its tax payable?

No not at all. The UK has direct access brokers, and they also have spreadbetting firms.

The UK government consider spreadbetting to be a form of gambling, and winnings are supposed to be tax free. However if you are full time trader, the UK tax authoraties will take a dim view if you try to exploit this loophole, and you can expect to be investigated, so its wise to have a secondary form of income on which you pay something.

I trade with a direct access broker, but due to country in which I am domiciled, I only pay around 4% in tax on trading profits. As others have said, there are options available where 0% rates are available. As a general rule, once you reach a reasonable threshold, the more money you earn, the less tax you’ll pay.

[kalesh]

This is what I will be doing, I will not be paying tax, not a cent never have never will (hopefully). I would have had to pay almost 50% tax after combining the income with my business income. But luckily for now there are some industries here one can invest in and get a 200% tax rebate, the best one being ITC, so I’m going to invest there instead of paying tax. And also often donations to certain organisations give 100 to 200% tax rebate, so I’ll be going that route as well.
My advice would be to find a way to get the money you would otherwise have to pay taxes to either generate more revenue for you or to help out some folks somewhere.

[Evad]

I love your optimism… talking about the tax side before your pockets are bulging with cash.

My cup is always half full. Its good to be prepared isn’t it? and that would be a very important part - the Tax that is.
But like Ruilima22 this is why i ask becasue i want to “realize” any gains. Am doing ok at the moment weather Fluke or not.
There was another thread on here somewhere where someone mentioned going into a real account for the experience straight away. I have demoed for a few months and now have been live for a few and this I totally agree. It has made me cautious because of the “real” factor.
Time to realize some gains i Think off to the accountant.

When your into seven figures annually there are plenty of exceptionally gift accountants that would just love your business. You will be taxed in the country you are considerd domestiled but that doesnt mean you necessarily need to live there. So pick a counrty wisely… there are several who wont charge you more than 10% tax and at least one that wont charge you tax at all.

This is all good but not ready to move country to gain the tax benefits just yet. I’m in Australia also.

Or you can form a company and look to the above countries… the possibilities are endless. I hope you make it and have fun doing the two step with the tax man.

The 2 step? I hope this isn’t a term to Dodge. Not my goal. and still haven’t heard any real stories

[R_Carter]

This is all good but not ready to move country to gain the tax benefits just yet. I’m in Australia also.

The 2 step? I hope this isn’t a term to Dodge. Not my goal. and still haven’t heard any real stories

I thought it was clear you dont need to move countries to be regarded as a resident for tax purposes. Aus ha… how come I cant walk down Earls Court, London for back packing Australians if its so great… just kidding. But they lead the table in the UK for illegally overstaying their visas by 9:1 V emerging former European ex comunist countries?

So you really want to pay between 40% - 90% of your income to the Government as a high earner??

You wont hear any real stories those that cant teach… those that can keep quite.

[Evad]

I thought it was clear you dont need to move countries to be regarded as a resident for tax purposes.

Na sorry not that clear could you please elaborate on this how would this be setup?

Aus ha… how come I cant walk down Earls Court, London for back packing Australians if its so great… just kidding.

Sorry Ive missed you humor there - as in “don’t understand”

But they lead the table in the UK for illegally overstaying their visas by 9:1 V emerging former European ex comunist countries?

That i find funny. Bloody Auzzies. I can say that cause im a Kiwi living here lol

So you really want to pay between 40% - 90% of your income to the Government as a high earner??

No i don’t - why would I. Need ya head read (Kerry packer) if don’t try to minimize tax. But this is what i originally started to ask. So a strat could be found. IE withdrawing only certain amounts per certain time a year.
Im thinking your other country solution maybe be something worth looking into though. as above could you please show/tell me how this is done.
Even if trading from “another country” when this money is transferred to OZ it will be subject to tax from there no?. Interesting

You wont hear any real stories those that cant teach… those that can keep quite.

Why is this? I aint no millionaire but id like to think that if i was i would be sharing how I did it. + on top of that not in a “gloating” manner but isn’t it a “wow” factor when u hear someone tell a story about what they have achieved. I personally find it that way. It’s motivational IMHO

Hey and thanks for the replies, i do appreciate it.

[R_Carter]

Na sorry not that clear could you please elaborate on this how would this be setup?

Sorry Ive missed you humor there - as in “don’t understand”

That i find funny. Bloody Auzzies. I can say that cause im a Kiwi living here lol

No i don’t - why would I. Need ya head read (Kerry packer) if don’t try to minimize tax. But this is what i originally started to ask. So a strat could be found. IE withdrawing only certain amounts per certain time a year.
Im thinking your other country solution maybe be something worth looking into though. as above could you please show/tell me how this is done.
Even if trading from “another country” when this money is transferred to OZ it will be subject to tax from there no?. Interesting

Why is this? I aint no millionaire but id like to think that if i was i would be sharing how I did it. + on top of that not in a “gloating” manner but isn’t it a “wow” factor when u hear someone tell a story about what they have achieved. I personally find it that way. It’s motivational IMHO

Hey and thanks for the replies, i do appreciate it.

As I said when you start earning the figures you need to pay a visit to a top tax lawyer/ accountant… I aint qualified to go into specifics. But as previous posters and I have said its possible to drastically reduce your tax liability. Its all a question of where your considered domiciled. I live in Gibraltar.