Proactive planning now could dramatically reduce your trading taxes.
Unfortunately, most Americans plan to fail, by failing to plan now! This astonishing habit will continue as people sit back and relax as the tax deadline has come and past. Costing thousands in over-payments to the IRS for traders, investors, and small business owners.
We have all been there, enduring the anxiety of April 14th because we have done nothing for tax planning. Unfortunately, most taxpayers will wait until after January 2011 to start planning only to find that its too late. Why? Any legitimate tax planning must be done early enough in the tax year to be effective and after year end, its too late. Unless of course you want to make an IRA contribution, but again that is not effective planning nor does it dramatically reduce your taxes.
We have worked with thousands of day traders and investors this last tax season. Our busiest day for phone calls and emails is April 14th!
Here are the most common questions we were asked;
Unfortunately, most Americans plan to fail, by failing to plan now! This astonishing habit will continue as people sit back and relax as the tax deadline has come and past. Costing thousands in over-payments to the IRS for traders, investors, and small business owners.
We have all been there, enduring the anxiety of April 14th because we have done nothing for tax planning. Unfortunately, most taxpayers will wait until after January 2011 to start planning only to find that its too late. Why? Any legitimate tax planning must be done early enough in the tax year to be effective and after year end, its too late. Unless of course you want to make an IRA contribution, but again that is not effective planning nor does it dramatically reduce your taxes.
We have worked with thousands of day traders and investors this last tax season. Our busiest day for phone calls and emails is April 14th!
Here are the most common questions we were asked;
- Can I file for the Mark to Market election for my 2009 trading?
- Can I establish a corporation or LLC for my trading activity and make it retroactive for 2009?
- What do I need to do to ensure that I meet trader status for 2009?
- What deductions may I take for 2009 and how should I keep track?
- Can I draw a salary out of my business now and claim it for 2009 for contribution to a retirement plan?
- I made money on Spot Forex, what do I need to do to take advantage of the 1256 tax treatment?
The Mark to Market election was the only question that could have been answered "Yes" however, there was not enough time before the deadline it implement. If you were to compare tax planning to auto insurance; you total a new car you just paid $75,000 cash for and out of the excitement, you failed to obtain insurance. How would your State Farm agent reply when you ask about a new policy? I am sure you would get the same chuckle from the insurance agent that most get from appealing to the IRS.
More to Life Than Tax Planning
All of us become wrapped up in our lives. After all, there is more to life than tax planning. We would rather spend our sparse free time with family and doing the things we enjoy. You do not have to sacrifice your free time to drastically and effectively cut your tax bill!
Our team of professionals have meticulously studied the tax code and trader tax cases to reflect the changes for 2010.
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