|
PureBytes Links
Trading Reference Links
|
> Assuming you trade futures, 60% is taxed as long term and 40% as short
> term regardless of holding time and by filing as a trader, you can
> deduct all expenses and income is not "earned income" and therefore
> not subject to employment taxes so there is little reason other than
> pension planning considerations to elect an alternative entity.
However, there doesn't appear to be much disadvantage either.
According to my CPA, trading income in an S corp (but NOT a C corp)
is passed through to the personal return "unchanged in character" or
some term like that -- meaning that you retain the same 60/40
benefits &etc even though the income happened inside the corp.
I was preparing to move my trading account outside our small S corp
until he told me this. He didn't see any reason to move it out.
Gary
|