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Any US currency traders do your own taxes? I have a question 3 replies

Claiming your trading losses on Taxes 6 replies

What can you write-off your taxes as individual and corporation? 3 replies

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  • #1
  • First Post: Edited 11:37pm Feb 25, 2015 11:14pm | Edited 11:37pm
ima cut straight to the chase, started trading in 2005 didn't start making money untill 2010 and there goes the problem, as i was making money i was taking money out my broker account and living life, a very nice one, moral of the story the IRS claims i owe them more money then i have in my bank account. pay your taxes or end up like me.
  • #2
  • Feb 26, 2015 4:53am Feb 26, 2015 4:53am
Quoting PoundTrader
ima cut straight to the chase, started trading in 2005 didn't start making money untill 2010 and there goes the problem, as i was making money i was taking money out my broker account and living life, a very nice one, moral of the story the IRS claims i owe them more money then i have in my bank account. pay your taxes or end up like me.
Therein lies the problem. Taxation = theft, pure and simple. How did your protection racket, sorry, IRS find out?
  • #3
  • Feb 26, 2015 7:01am Feb 26, 2015 7:01am
Quoting PoundTrader
ima cut straight to the chase, started trading in 2005 didn't start making money untill 2010 and there goes the problem, as i was making money i was taking money out my broker account and living life, a very nice one, moral of the story the IRS claims i owe them more money then i have in my bank account. pay your taxes or end up like me.
Talk with them + show you statement and other records that they proves your earnings.
  • #4
  • Feb 26, 2015 8:41am Feb 26, 2015 8:41am
Quoting Macdon
{quote} Therein lies the problem. Taxation = theft, pure and simple. How did your protection racket, sorry, IRS find out?
You buy a house and a few cars there on you, i glad they say i owe them instead of them charging me with tax invation
  • #5
  • Feb 26, 2015 5:17pm Feb 26, 2015 5:17pm
Quoting PoundTrader
{quote}You buy a house and a few cars there on you, i glad they say i owe them instead of them charging me with tax invation
Can't you say you won all the money at the races/casino and you stashed it away and then bought the house and cars? What about a gift from a rich relative overseas?

If they charge you for tax evasion just say, I had no idea I had to pay tax as I did not deduct my losses during 2005-10.
  • #6
  • Feb 26, 2015 5:25pm Feb 26, 2015 5:25pm
Quoting Macdon
{quote} Can't you say you won all the money at the races/casino and you stashed it away and then bought the house and cars? What about a gift from a rich relative overseas? If they charge you for tax evasion just say, I had no idea I had to pay tax as I did not deduct my losses during 2005-10.
Don't even try it this way. There are local laws in place to handle these situations and you can't simply say you lost earlier you don't have to pay taxes now. That's what tax reports are for and if you lie to them now be aware that they will take an extra close look at your financial statements every year from now on.
  • #7
  • Feb 27, 2015 9:06am Feb 27, 2015 9:06am
Get a GOOD tax attorney who is familiar with trading. In the US you are taxed at 60% capital gain rate and 40% normal income rate. You are also allowed to carry forward losses from previous years if they exceeded your gains for the same period. You may need to file amended returns for previous years to reduce your debt. Don't skimp. Pay a good tax person to help you fix this.
  • #8
  • Mar 1, 2015 1:30am Mar 1, 2015 1:30am
Where i live we should pay tax for unrealized profit every year.. If i gain 50% a year the government will demand 42% of my gain, regardless of previous years potential loss..
-Makes it freaking hard to compound..
  • #9
  • Mar 1, 2015 5:21am Mar 1, 2015 5:21am
Quoting PoundTrader
{quote}You buy a house and a few cars ...
Well, it looks to me, that you didn't treat your trading as a business and that's the problem. If your earnings in forex were offset by some investment expenses instead,
then you could laugh all the way to Tax-Office and most probably you would owe them a big-fat-zero. Thus, you've learned something in a hard way unfortunately.
  • #10
  • Mar 1, 2015 6:33am Mar 1, 2015 6:33am
And people think when they can actually trade all their problems will be over. Ever thought of putting it through a company?
I need to finish something i started
  • #11
  • Mar 1, 2015 7:11am Mar 1, 2015 7:11am
Don't know about the US but I'm sure you can offset your previous losses forward. Best to make your own company.
lak
  • #12
  • Mar 1, 2015 7:24am Mar 1, 2015 7:24am
Quoting lakhan
Don't know about the US but I'm sure you can offset your previous losses forward. Best to make your own company. lak
Lak,Surely corporation tax is lower than personal tax. Assets protected. Claim against expenses like car , equipment.To many plus once you can trade to not have it all go through a company.
I need to finish something i started
  • #13
  • Mar 1, 2015 7:47am Mar 1, 2015 7:47am
http://usa-the-republic.com/revenue/...ory/Chap5.html

Ghost Rider - WWTBMD?
  • #14
  • Mar 1, 2015 7:49am Mar 1, 2015 7:49am
Quoting bigwal
{quote} Lak,Surely corporation tax is lower than personal tax. Assets protected. Claim against expenses like car , equipment.To many plus once you can trade to not have it all go through a company.
Yes.. Best to see an accountant with all the jargon. I have a main job so my trading income is tax free. sb account. I'm no expert though,
lak
  • #15
  • Mar 1, 2015 12:47pm Mar 1, 2015 12:47pm
i don't have a uncle name sam but he damn sure want his money if not, prison time
  • #16
  • Mar 1, 2015 12:58pm Mar 1, 2015 12:58pm
Poundtrader,

Be safe and protect yourself, along with any assets you hold.

Warren
I need to finish something i started
  • #17
  • Mar 1, 2015 1:16pm Mar 1, 2015 1:16pm
Open a savings account at your bank to store tax payments in. Hopefully you have online banking, so funds transfers are easy.

I built a formula on excel for how much money goes where on each withdrawal. I only use 50% of a withdrawal for personal use. 10% goes to charity, 27.84% goes to Obama and the remaining 12.16% goes to my savings.

For the IRS, I multiply the spending amount by 0.5568 and then move that amount to the tax account. If you keep more for spending, then multiply the withdrawal by 0.2784. If you pay state tax, add that number to it.

It might sound confusing, but I input how much money I want, and from there it calculates the withdrawal and various deductions.
So:

Amount want to spend (x).....Charity (x times 0.2).....Tax (x times 0.5568).....Savings (x times 0.2432).....Withdrawal Amount (Amt+Char+Tax+Sv)
...........10,000................................2,000...........................5568...................................2432...........................................20,000


Hope that helps future issues.
You cannot be extraordinary by being normal
  • #18
  • Mar 1, 2015 2:04pm Mar 1, 2015 2:04pm
Use an offshore bank account
  • #19
  • Mar 1, 2015 3:38pm Mar 1, 2015 3:38pm
Quoting PoundTrader
i don't have a uncle name sam but he damn sure want his money if not, prison time
the tax rate is much favorable compared to equities trading. I suggest do your fair share on taxes, it is not worth having the feds up your a$$. Once they are up your a$$, you bet they will on your a$$ for a long time. Too much headaches.
Trade what you see, not what you think!
  • #20
  • Mar 1, 2015 9:02pm Mar 1, 2015 9:02pm
Quoting OMGtrader
{quote} the tax rate is much favorable compared to equities trading. I suggest do your fair share on taxes, it is not worth having the feds up your a$$. Once they are up your a$$, you bet they will on your a$$ for a long time. Too much headaches.
im taking care of it now, payment plan with a little intrest / penalty of course
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