Tom,
Since you're worrying about paying taxes, you must have done quite well last year. I wish I will have the same worry by the end of this year <g>.
Here are a few thought, some realistic some wild:
1. I am sure you have IRA or 401k or some kind of retirement fund that can defer your capital gains. Contribute the maximum amount at the beginning of the year (Do not wait till the year end)
2. When you trade, once in a while there comes a sure money winner such as DBCC and NAVR. Try to use your IRA (or tax deferred account) rather than your regular account so that all profit will be deferred.
(This really helps, my 2 retirement accounts are up 120% & 200% while my trading acct. is only up 20%)
3. I do not know if you are a full time trader but if you are, then set up a trading company and you can deduct all business related expenses (from computer expense, internet access, books & research expense, home office expense, to travel expense - if you travel to check the company you are going to invest, of course)
4. If you really made a lots of money, think about diversifying some of your assets into real estate or race horse farm (this is a wild one). Most of the time, both investments lose money for a while. (Real estate - due to building depreciation expense)
But it pays to pay taxes. Think of uncle Sam as your business partner.
And be thankful that we are not living in Europe or Canada; their tax rate is much worse than ours. :o)
(I belive the government should not take no more than 10% of my income though - reduce government & cut taxes; social security tax, income tax, sales tax.....) |
