Re: The "Trader Status" audit

[CalaxCorp@xxxxxxx]

Great post, Ted.

Two additional questions came to mind.

1.  Would paying a 20% profit share out of one's IRA account to himself or 
his corporation be a "related party transaction"?  Could you clarify if this 
is a "prohibitive transaction" or not?

2.  Would the person or his corporation sharing the trading profit be subject 
to CTA registration rules if the trades are in the futures markets?

Thank you in advance for your clarification.

Sincerely,
Bill 
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

In a message dated 9/20/99 9:50:39 AM Pacific Daylight Time:

<< Subj:     Re: The "Trader Status" audit
 Date:  9/20/99 9:50:39 AM Pacific Daylight Time
 From:  TBTesser@xxxxxxx
 To:    fritz@xxxxxxxx
 CC:    omega-list@xxxxxxxxxx, realtraders@xxxxxxxxxxxx
 
 Gary
 I liked your idea of having your retirement plan hire you as a trading 
 advisor to avoid it being considered a business. The suggestion I make is to 
 incorporate, or form an LLC first so as to put even more distance between 
the 
 owner of the IRA (you) and the Trader (the corp).  I can't say for sure if 
it 
 will fly 100%, but it certainly was creative, and I like it. I think with 
the 
 Corporation as the trader it will at least stand a chance of holding up 
under 
 scrutiny. If you set it up in Nevada, then there is more privacy and you can 
 even issue bearer shares there. Also as a Corp you will probably stand a 
 better chance of the trustee paying you out of the IRA as a 
 Trading/Investment advisory management fee. Good luck with it and keep me 
 posted on how it works out.
 
 Regards
 Ted Tesser
  >>