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I'm making money now what?

  • #21
  • Jan 22, 2007 7:20am Jan 22, 2007 7:20am
now give it to your wife or girlfriend, she knows 100 ways how to spend it ...lol, at least mine does...
its just money
  • #22
  • Jan 22, 2007 7:40pm Jan 22, 2007 7:40pm
Hi Fumafuma,
Come to Vegas bring lots of cash but be prepared to leave it all here . If you can come prepared to do that you'll have a great time! I love it out here and enjoyed vacationing here before I became a resident. As for my Kana & Kanji skills not so good. I studied it briefly a few years ago but if my life depended on having to decipher a character I fear that I would be six feet under.
Bummer on your interest rates I hope that Forex works out for you. I am surprised to hear that about the rates there I have always heard about BOJ's strict regulation of the banking industry out there. Plus seeing how well your corporations and industrials sectors have performed over the past few decades I thought that you would be able to make a little bit in banking.

Happy Trading

Quoting fumafuma
Hi Pairtrader,

Thank you for your kindly reply. I wish I make a journey to Las Vegas...
(Did you know Kana and Kanji? That picture which I set the example to you was expression that Japanese investment companies tried to give customers a favorable impression.)

We(Japanese)are not yet accustomed to positively aiming at capital gains.
But at this level of interest rates, a deposit of 1 million yen will produce an annual interest of only 100 yen.

In Japan, individual investors have been able to trade foreign currency since 1998, now foreign exchange online trading is more popular among individual investors. Now foreign exchange live accounts which we opened became about 600,000. But Japanese FX brokers is shallow history, we will not deposit a large amount of money...
(I opened a live account at a certain American FX broker.)
"Opportunities multiply as they are seized."- Sun Tzu
  • #23
  • Jan 22, 2007 7:45pm Jan 22, 2007 7:45pm
WHTenn, Thanks for your reply that is very helpful. I'll look into "Trader Status" sounds like exactly what I needed. thanks again!!
Happy Trading
Quoting WHTenn
WHTenn, I am leaning towards an LLC and from what I have found it seems to be a very good option. Vegas talks about setting up some offshore accounts that sounds alluring as well though. I was wondering if I set up an LLC will Uncle Sam try to regulate my day to day since my primary business will be investment. Any thoughts?

Uncle Sam should not try to regulate your trading activities nor interfere. I use an LLC for the sole purpose of trading the forex. Make sure your eligible as a trader status and not as an investor status and your all set. (Do a google search for trader status to get an idea of what the difference is). I like being taxed only once since it is an LLC. Use the IRS 1256 Contract rules which is the best of all tax-worlds with ordinary tax treatment for losses, so they are exempt from capital loss limitations. And capital gains (60/40) tax-treatment for gains, so they save up to 12% in tax rates (23% versus 35% at current tax rates).

You will see others tell you to move to another island and trade. (These are ideas from people that want to move and have not themselves moved).This is fine if you do not want to pay taxes, but realistically, you cannot do so unless you have a lot of money in the first place. Just pay the 23% taxes (under the 1256 IRS Contract) and keep your butt here in the US. If you leave and renounce your citizenship, you may regret doing so.
"Opportunities multiply as they are seized."- Sun Tzu
  • #24
  • Jan 22, 2007 7:47pm Jan 22, 2007 7:47pm
You so funny! Mine makes her own though, but I guess that I am just a piptastic gigilo.
Quoting de123
now give it to your wife or girlfriend, she knows 100 ways how to spend it ...lol, at least mine does...
"Opportunities multiply as they are seized."- Sun Tzu
  • #25
  • Jan 23, 2007 1:20am Jan 23, 2007 1:20am
Hi Pairtrader,

Thank you for your reply. Were you studying the Kanji with Madam? How nice!
In Japan, tax system is socialist tax system. I heard "re-distribution of income by bureaucracy".
For example, with the income exceeding 18 million yen, 40% will be held by the country as an income tax.
Inhevitance tax is 50%(over 300 million yen),tax of interest income is 20%.
Tax of trading foreign currency is included in income tax.

Those who want to receive welfare were gathering in Toyota City from other cities, now citizen is not permitted to get welfare simply.

If the heavy tax continues in Japan, rich men and money will be flowing out of Japan into the U.S.etc., and only poor men will remain in Japan, we think.



Quoting pairtrader
Hi Fumafuma,
Come to Vegas bring lots of cash but be prepared to leave it all here . If you can come prepared to do that you'll have a great time! I love it out here and enjoyed vacationing here before I became a resident. As for my Kana & Kanji skills not so good. I studied it briefly a few years ago but if my life depended on having to decipher a character I fear that I would be six feet under.
Bummer on your interest rates I hope that Forex works out for you. I am surprised to hear that about the rates there I have always heard about BOJ's strict regulation of the banking industry out there. Plus seeing how well your corporations and industrials sectors have performed over the past few decades I thought that you would be able to make a little bit in banking.

Happy Trading
Peace and Happiness through Prosperity (by Konosuke Matsushita)
  • #26
  • Jan 23, 2007 1:26am Jan 23, 2007 1:26am
This picture is the situation of the first writing of the year.
Japanese call this "Kaki-zo-me".
Attached Image
Peace and Happiness through Prosperity (by Konosuke Matsushita)
  • #27
  • Jan 23, 2007 9:10am Jan 23, 2007 9:10am
Guys Dubai is a beautiful tax free city..I suggest you move here..
  • #28
  • Jan 23, 2007 4:06pm Jan 23, 2007 4:06pm
Quoting haks79
Guys Dubai is a beautiful tax free city..I suggest you move here..
Now, if I wanted to move somewhere, Dubai is the ultimate place to go:

http://en.wikipedia.org/wiki/Dubai

http://www.dubaicityguide.com/main/index.asp

I am going to vacation there this year.
  • #29
  • Jan 23, 2007 6:43pm Jan 23, 2007 6:43pm
Quoting fumafuma
Hi Pairtrader,

Thank you for your reply. Were you studying the Kanji with Madam? How nice!
In Japan, tax system is socialist tax system. I heard "re-distribution of income by bureaucracy".
For example, with the income exceeding 18 million yen, 40% will be held by the country as an income tax.
Inhevitance tax is 50%(over 300 million yen),tax of interest income is 20%.
Tax of trading foreign currency is included in income tax.

Those who want to receive welfare were gathering in Toyota City from other cities, now citizen is not permitted to get welfare simply.

If the heavy tax continues in Japan, rich men and money will be flowing out of Japan into the U.S.etc., and only poor men will remain in Japan, we think.
Sounds like things are getting tough for business, hope that the government makes some changes for the better out there.
"Opportunities multiply as they are seized."- Sun Tzu
  • #30
  • Jan 23, 2007 6:45pm Jan 23, 2007 6:45pm
Quoting WHTenn
Now, if I wanted to move somewhere, Dubai is the ultimate place to go:

http://en.wikipedia.org/wiki/Dubai

http://www.dubaicityguide.com/main/index.asp

I am going to vacation there this year.
If you want to be in the desert Vegas is the only place to be!! Sorry guys but Dubai aint got notin on us:
"Opportunities multiply as they are seized."- Sun Tzu
  • #31
  • Jan 23, 2007 7:22pm Jan 23, 2007 7:22pm
You are getting some darn good advice. I set up a c corp and LLC combination at the advice of a online tax advisor. I had made great money the year before and it and was anticipating another banner year. If you are really printing money on a consistant basis the dual entities may have some benefits. I am currentely only using the LLC as its more trouble than its worth to keep track of the dual book work. Be carefull and check around as it is my opinion that the tax advisor that I used WAY OVER SELLS THE BENIFITS,of the dual set up. Also checking to see who some of the people on FF use to check on customer service. IE do they call you back and answer your questions, Or are they just after the set up fees Best wishes GB
  • #32
  • Jan 23, 2007 7:49pm Jan 23, 2007 7:49pm
Quoting George B.
You are getting some darn good advice. I set up a c corp and LLC combination at the advice of a online tax advisor. I had made great money the year before and it and was anticipating another banner year. If you are really printing money on a consistant basis the dual entities may have some benefits. I am currentely only using the LLC as its more trouble than its worth to keep track of the dual book work. Be carefull and check around as it is my opinion that the tax advisor that I used WAY OVER SELLS THE BENIFITS,of the dual set up. Also checking to see who some of the people on FF use to check on customer service. IE do they call you back and answer your questions, Or are they just after the set up fees Best wishes GB
Trader Accounting has been getting some good reviews, but I have only checked out their home page so far. http://www.forexfactory.com/showthread.php?t=8177
They had more answers to my questions on their home page than my CPA could give me so I think that is pretty good.
I have also heard from others that the dual set up has more paperwork and tracking than it is worth and was advised to choose which one suited me best as the ends don't seem to justify the means.
"Opportunities multiply as they are seized."- Sun Tzu
  • #33
  • Jan 24, 2007 3:36am Jan 24, 2007 3:36am
Quoting haks79
Guys Dubai is a beautiful tax free city..I suggest you move here..
What a glorious city!(Arabian Nights?) Although I cannot read Arabic...
Last year I subscribed for DV-2007(Diversity Immigrant Visa Program in United States).
Peace and Happiness through Prosperity (by Konosuke Matsushita)
  • #34
  • Jan 25, 2007 12:20am Jan 25, 2007 12:20am
Why can't you just trade as an individual and pay your 15% capital gains tax?
How you act is more important than how you feel.
  • #35
  • Jan 25, 2007 12:44am Jan 25, 2007 12:44am
Quoting Warmagus
Why can't you just trade as an individual and pay your 15% capital gains tax?
Ahhh. the concept of incorporating "The Cost of doing Business" into the calculation suggests that you have been an independant businessman before joining the 'quest'.

But... If you could coerce your borker into giving you a 1 pip discount [even 0.5 pips] wouldn't you?

Same applies to how much Prft you have to pay to $am or Tony or whomever.
Legally, of course.
  • #36
  • Jan 25, 2007 8:01pm Jan 25, 2007 8:01pm
Quoting Bemac
Ahhh. the concept of incorporating "The Cost of doing Business" into the calculation suggests that you have been an independant businessman before joining the 'quest'.

But... If you could coerce your borker into giving you a 1 pip discount [even 0.5 pips] wouldn't you?

Same applies to how much Prft you have to pay to $am or Tony or whomever.
Legally, of course.
That has always seemed to be the best paln to me. Pay what you have to, but not a penny more.
"Opportunities multiply as they are seized."- Sun Tzu
  • #37
  • Jan 25, 2007 8:25pm Jan 25, 2007 8:25pm
[quote=Darkstar;193673]Give Sam the finger and move to St. Kitts. It's what I'm planning to do. We can start a forex community on a beautiful Caribbean island. [/quote


Let me know when you move! I'm coming for holidays!
Hang on! There is an investment idea for you, we should start a FF thread for house swaps!!

Better go talk to Fiji....
  • #38
  • Jan 26, 2007 2:58am Jan 26, 2007 2:58am
I want to thank everone for all of the help thus far, and please keep it coming God knows I need it. I just wanted to share some of the things that I have found.
After all of the discussion on this thread and the PM's I've been getting I feel that I am strongly leaning in the direction of an LLC. However I just wanted to metion that in most of the PM's I have had, there was talk of dual entites. It's seems to me this is a good question for all of us, How much work are you willing to do to save a buck?
It seems that there are many options out there for us. It was suggested that I don't do anything and just pay my Capital Gains Tax. Or I could set up both an S Corp & LLC to reap greatest rewards, but the set up alone is time consuming and your costs are almost double. Then there is all of the regulations, the S Corp seems to an auditing nightmare. There are things that need to be done monthly, quarterly, and annually to keep Mr. IRS happy and I dont know about you but I am busy between my 9-5 and tring to keep my head above water by a pip or two.
From what I have found the LLC has a farily easy setup just drawing up your articial of corporation and your corporate seal. Then from there you have a lot of flexabilty, you receive most all of the the tax benifits that you would get from a Corporation without the double taxation that they face, and you have the reduced paper work and accounting of a small personal business.
I would like to know if anyone has good advice on an off shore secaniro. That seems have quiet a few of us perplexed. Is there a legal way to remain a US Citizen and pay little or no tax on your forex account?
Thanks again for all of the posts and replies, Happy Trading
"Opportunities multiply as they are seized."- Sun Tzu
  • #39
  • Jan 26, 2007 5:48pm Jan 26, 2007 5:48pm
Quoting Warmagus
Why can't you just trade as an individual and pay your 15% capital gains tax?
Please let me know how you pay 15% capital gain taxes. I thought I was at the lowest tax bracket with IRS Statute 1256 (60/40). As a professional trader, I never heard of a 15% tax bracket for forex traders. I do have an LLC which is the best set up for a trader because I am taxed once instead of twice with S and C Corporations.

If you tell me how I can pay 15% legally, you have a case of champagne coming your way.
  • #40
  • Edited 11:09am Jan 27, 2007 11:09am | Edited 11:09am
Why can't you just trade as an individual and pay your 15% capital gains tax?
Quoting WHTenn
Please let me know how you pay 15% capital gain taxes. I thought I was at the lowest tax bracket with IRS Statute 1256 (60/40). As a professional trader, I never heard of a 15% tax bracket for forex traders. I do have an LLC which is the best set up for a trader because I am taxed once instead of twice with S and C Corporations.

If you tell me how I can pay 15% legally, you have a case of champagne coming your way.
I have not been able to find anything on a 15% Capital Gains tax for Trades either, so please do share if know something Warmagus.
"Opportunities multiply as they are seized."- Sun Tzu
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