|
PureBytes Links
Trading Reference Links
|
<x-html><!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 HTML//EN">
<HTML>
<HEAD>
<META content=text/html;charset=iso-8859-1 http-equiv=Content-Type>
<META content='"MSHTML 4.72.2106.6"' name=GENERATOR>
</HEAD>
<BODY bgColor=#ffffff>
<DIV><FONT color=#000000 size=2>I was just sitting here doing some work on my
IRA and an idea hit me on how to beat the tax man. Please send any
comments to me.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>The idea being to use all your accounts to
generate as much tax free income into your IRA as possible.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Assume $500,000 trading capital</FONT></DIV>
<DIV><FONT size=2>Current IRA $5000</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Here is the plan. </FONT></DIV>
<DIV><FONT color=#000000 size=2>1. Form a corporation and issue 500000 $1
non dividend paying share to yourself. Stipulate in the articles of
incorporation that as CEO, your room, board, car and other expenses will be
pick-up by the corporation.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT size=2>2. Declare that the corporation will sell 5000 dividend
paying shares.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>3. Sell the 5000 shares to your IRA.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>4. Do business as usual. Easier to deduct
expenses. Pay yourself rent, etc...</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>5. At the end of the trading year total up the net
revenue and issue a dividend to reduce revenue to zero. If I understand
corporate law correctly, you would only owe corporate income tax on any income
which whould net out to be zero because of the dividend, therefore no
tax. </FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>6. Your IRA then grows based on your ROR on $505,000 vs.
$5000</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Any idea on why this will or will not work.</FONT></DIV>
<DIV><FONT size=2></FONT><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Thanks</FONT></DIV>
<DIV><FONT color=#000000 size=2>Mike Clark<BR><A
href="mailto:clarkmj@xxxxxxxxxx";>clarkmj@xxxxxxxxxx</A></FONT></DIV>
<DIV><FONT color=#000000 size=2> </FONT></DIV></BODY></HTML>
</x-html>From ???@??? Fri May 29 12:48:29 1998
X-POP3-Rcpt: neal@xxxxxxxxx
Return-Path: <owner-realtraders@xxxxxxxxxxxxxx>
Received: from accessone.com (list.listserver.com [198.68.191.15])
by purebytes.com (8.8.4/8.8.4) with ESMTP
id MAA13878 for <neal@xxxxxxxxxxxxx>; Fri, 29 May 1998 12:21:02 -0700
Received: from localhost (localhost [127.0.0.1])
by accessone.com (8.8.5/8.8.5/PIH) with SMTP id MAA09420;
Fri, 29 May 1998 12:20:26 -0700 (PDT)
Received: from pm01sm.pmm.mci.net (pm01sm.pmm.mci.net [208.159.126.150])
by accessone.com (8.8.5/8.8.5/PIH) with ESMTP id MAA09206
for <realtraders@xxxxxxxxxxxxxx>; Fri, 29 May 1998 12:17:02 -0700 (PDT)
Received: from pshazgqf (usr22-dialup37.mix2.Atlanta.mci.net)
by PM01SM.PMM.MCI.NET (PMDF V5.1-10 #27033)
with SMTP id <0ETQ004ZEG76OI@xxxxxxxxxxxxxxxxxx> for
realtraders@xxxxxxxxxxxxxx; Fri, 29 May 1998 19:16:25 +0000 (GMT)
Message-Id: <000001bd8b36$a3d85300$653837a6@xxxxxxxx>
Date: Thu, 28 May 1998 15:48:01 -0500
Reply-To: clarkmj@xxxxxxxxxx
Sender: owner-realtraders@xxxxxxxxxxxxxx
From: clarkmj <clarkmj@xxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: An idea to beat the tax man
MIME-version: 1.0
Content-type: multipart/alternative;
boundary="----=_NextPart_000_00AE_01BD8A4F.FF004860"
X-To: realtraders <realtraders@xxxxxxxxxxxxxx>
X-Mailer: Microsoft Outlook Express 4.72.2106.4
X-MSMail-Priority: Normal
X-MimeOLE: Produced By Microsoft MimeOLE V4.72.2106.4
X-Priority: 3
X-Listprocessor-Version: 8.1 -- ListProcessor(tm) by CREN
<x-html><!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 HTML//EN">
<HTML>
<HEAD>
<META content=text/html;charset=iso-8859-1 http-equiv=Content-Type>
<META content='"MSHTML 4.72.2106.6"' name=GENERATOR>
</HEAD>
<BODY bgColor=#ffffff>
<DIV><FONT color=#000000 size=2>I was just sitting here doing some work on my
IRA and an idea hit me on how to beat the tax man. Please send any
comments to me.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>The idea being to use all your accounts to
generate as much tax free income into your IRA as possible.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Assume $500,000 trading capital</FONT></DIV>
<DIV><FONT size=2>Current IRA $5000</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Here is the plan. </FONT></DIV>
<DIV><FONT color=#000000 size=2>1. Form a corporation and issue 500000 $1
non dividend paying share to yourself. Stipulate in the articles of
incorporation that as CEO, your room, board, car and other expenses will be
pick-up by the corporation.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT size=2>2. Declare that the corporation will sell 5000 dividend
paying shares.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>3. Sell the 5000 shares to your IRA.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>4. Do business as usual. Easier to deduct
expenses. Pay yourself rent, etc...</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>5. At the end of the trading year total up the net
revenue and issue a dividend to reduce revenue to zero. If I understand
corporate law correctly, you would only owe corporate income tax on any income
which whould net out to be zero because of the dividend, therefore no
tax. </FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>6. Your IRA then grows based on your ROR on $505,000 vs.
$5000</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Any idea on why this will or will not work.</FONT></DIV>
<DIV><FONT size=2></FONT><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Thanks</FONT></DIV>
<DIV><FONT color=#000000 size=2>Mike Clark<BR><A
href="mailto:clarkmj@xxxxxxxxxx";>clarkmj@xxxxxxxxxx</A></FONT></DIV>
<DIV><FONT color=#000000 size=2> </FONT></DIV></BODY></HTML>
</x-html>From ???@??? Fri May 29 12:48:31 1998
X-POP3-Rcpt: neal@xxxxxxxxx
Return-Path: <jorxj@xxxxxxxxxxxx>
Received: from belarus.it.earthlink.net (belarus-c.it.earthlink.net [204.250.46.99])
by purebytes.com (8.8.4/8.8.4) with ESMTP
id MAA13908 for <neal@xxxxxxxxxxxxx>; Fri, 29 May 1998 12:25:26 -0700
Received: from aquila (pool024-max14.ds17-ca-us.dialup.earthlink.net [209.179.10.124])
by belarus.it.earthlink.net (8.8.7/8.8.5) with SMTP id MAA02649
for <neal@xxxxxxxxxxxxx>; Fri, 29 May 1998 12:25:07 -0700 (PDT)
Message-ID: <001001bd8b37$5e80bf80$7c0ab3d1@xxxxxx>
From: "George Van Noy" <jorxj@xxxxxxxxxxxx>
To: "Neal Hughes" <neal@xxxxxxxxxxxxx>
Subject: Re: Trading Advice
Date: Fri, 29 May 1998 12:23:16 -0700
MIME-Version: 1.0
Content-Type: text/plain;
charset="iso-8859-1"
Content-Transfer-Encoding: 7bit
X-Priority: 3
X-MSMail-Priority: Normal
X-Mailer: Microsoft Outlook Express 4.72.2106.4
X-MimeOLE: Produced By Microsoft MimeOLE V4.72.2106.4
Neal,
If you could email me your trading notes mentioned below, I would greatly
appreciate it.
Cool Trading,
George Van Noy
jorxj@xxxxxxxxxxxx
-----Original Message-----
From: Neal Hughes <neal@xxxxxxxxxxxxx>
To: omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
Date: Friday, May 29, 1998 11:18 AM
Subject: Re: Trading Advice
>
>Stan and Kaye,
>
>I like everything below except the paper-trading
>comment.. Here's my personal opinion in paper-trading,
>your mileage may vary..
>
>If you can't make (fake) profits in a paper-trading
>or back test exercise, you will definitely not
>succeed with real money.
>
>I agree that most back testing is suspect/hogwash when
>used to sell trading systems. And I agree that
>paper trading is not the same as real trading. But
>I've been able to save a lot of money by proving
>during paper trading that some concepts will not
>work in real trading.
>
>Paper trading allows me to test a higher volume of
>trades, on a more diverse collection of trading concepts
>during a shorter time-span, than real trading does.
>It accelerates the learning process, and reduces risk.
>One of the priorities of a new trader is to make
>his/her trading capital last through the learning
>process. Testing trading ideas in the real market
>can blow your capital quickly, so paper-trading
>can help with this by eliminating bad concepts
>before you test the better ones in the markets.
>
>But a concept which is validated by paper-trading
>may not work in the real world, no escaping that.
>Do your homework, paper trading is one way to do so.
>
>All of the successful techniques I use were tested
>on paper first.
>
>Here is another good book: The Disciplined Trader,
>by Mark Douglas.
>
>I've typed up several pages of good advice (basic
>truths about trading) for beginners, that have received
>good comments from beginner and experienced traders.
>Send me email if you want them, or search the archives
>of the RealTraders email list for prior messages.
>They convey some important basics which I learned the
>hard way.
>
>-Neal.
>
>At 01:21 PM 5/29/98 -0400, you wrote:
>>I recommend the following books about trading (as opposed to technical
>>analysis): "Computer Analysis of the Futures Market" by LeBeau and Lucas;
>>"Street Smarts" by Connors & Raschke; "Trading for a Living" by Elder.
If
>>you want to learn about Technical Analysis, try "Technical Analysis of the
>>Futures Markets" by Murphy. Avoid other peoples' systems; don't try paper
>>trading; and concentrate fully on how much you have at risk (and limit
>>yourself to a specific dollar risk in every trade) instead of
concentrating
>>on how much you can win.
>>
>>
>
>
|