|
PureBytes Links
Trading Reference Links
|
>Yes, I would like a little clarification on the following sentence.
"> Also futures trades, no matter the duration, are taxed as 60%
> long term capital gains."
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
>
>
>
>
|