<Off-topic> Eleleth:
Somebody has to file a Schedule D. Whether it is the individual or the corporation, somebody files the Schedule D.
There are some revenue-sharing schemes going around, where the trading firm actually employs you on the basis of a split of the profits, and you trade with the firm's money. You only put up a "deposit" against losses. I don't think these are a very good deal for the trader. These firms take a big cut, AND they charge you hefty "equipment fees" to boot.
The better of these firms take their cut at the end of the year, so if you lose, they lose with you. That is, they never lose, but their profits are reduced if you lose some of your winnings, so they have incentive to help you win in the long-run. Other firms take their cut out of every profitable trade. Not such a great arrangement for the trader.
The idea of using two tax ID numbers to allow you to box sounds highly dubious and possibly illegal. I would check with your tax professional to make sure you are not going to run afoul of the law. Remember, these guys are not there to protect you, but to sucker you into trading with them.
THERE IS NO 28% CAP ON *ANY* SHORT-TERM INVESTMENTS!
All gains from trading are capital gains. Short-term gains are currently taxed at the same rate as personal income. Capital gains are not earned income. You may be able to set up a corporation, and pay yourself a salary, but the corporation will still have to account for and pay taxes on capital gains. Again, check with your tax professional.
I am curious, what is "Wizard-equiped" RealTick III? I use RealTick III, and have written some of my own software to work with it. I'm always interested in looking at add-ons for RealTick III, since there aren't very many of them.
Are you saying that this firm has $5 commissions on 100-share trades? That is intrigueing. |
