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Yes, I would like a little clarification on the following sentence. A lot of
weight seems to have been given to this aspect in the comments as to the
comparison between Stocks & Futures.
Just how important is this point?
I am fortunate enough to not be eligible for taxes of any kind, so is this
aspect to be considered a point in favour of futures or stocks?
Regards,
Gram.
> Also futures trades, no matter the duration, are taxed as 60%
> long term capital gains.
One thing I've never been sure about: is this only if you trade them
on your personal account?
I trade in an account owned by my corporation. We've done all our
business ventures under this corporate umbrella, which has allowed us
to play some useful tax games. But I wonder if it's the wrong
approach for trading. It's an S-corp, so it pays no taxes -- all
profits flow through to me as salary/dividends. So since I receive
it as salary/dividends, does that mean I don't qualify for the 60/40
treatment?
Offhand I'm not even sure if salary taxation is better or worse than
cap gains. My CPA does my taxes. :-) I think cap gains tax is less
than income tax (and isn't subject to FICA/Medicare), but I'm not
sure. I need to ask my CPA about this but I'd like to be reasonably
informed before I raise it with him.
Gary
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