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On Mon, 29 Mar 1999, Robyn Greene wrote:
>
> What would that accomplish (in the US)? You'd wind up taking everything out of
> the corporation in the form of ordinary income (salary) or dividends. Plus -
> you'd have to be pretty careful dealing with the personal holding company
> rules. Robyn
I have read the other replies in addition to Robyn's. I was approaching
this from the standpoint of getting the maximum write off capability when
trading is your *business*. That is, you get full deductions for all
expenses incurred for the business, deductions for health insurance
expenses, i.e. all the usual benefits of incorporation, not just a ruse
to get trading status benefits. Also, I realize most people have to use
part of the trading income for living expenses, but I was thinking more
in terms of a corporation which reinvested all profits, therefore no
salaries other than token salaries. Where would incorporation provide the
best tax advantage for traders?
Cheers,
Jim
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