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Thomas Brun wrote:
>
> Now I could be wrong, as I am 60% of the time I make a trade, but I
> think you are confusing a Dealer and a Trader. I believe that Traders
> are not subject to Self Employment Tax and because of that they are not
> able to establish a SEP,Keogh, Etc. Dealers are subject to Self
> Employment and as such, are able to establish a SEP, Keogh, Eetc. At
> least that is what I have read in several publications.
>
> Regards,
>
> Tom........
>
Well, I would never give anyone tax advice. But let me tell you what I
do. I use a very fine tax lawyer/accountant. I am a professional
trader according to the IRS and I pay self employment tax, because I
do not choose to pay myself through a check in my firm's name that
with-holds social security tax. I DO have a pension trust, which means
I would be able to have a Keogh.
If you trade for a living, meaning you have no other discernable
income and you take advantage of that by writing off expenses, and if
you do not pay into social security, you are liable for self
employment taxes, or so my tax lawyer tells me every time I complain.
Tim Morge
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