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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: k.ramesh who wrote (2489)	12/13/1999 7:40:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

You should pay taxes quarterly. Pay later if you made $$ later or if you forgot. You may reduce or eliminate penalties the sooner you pay, when you realize $$ is due. How in the heck can you estimate your expected trading profits or losses? That's up to each person, but IMO a trader status taxpayer (and any concerned investor for that matter) should have books and records computing his YTD trading profits each and every day. Colin

To: k.ramesh who wrote (2489)	12/13/1999 8:06:00 PM
From: Stewart Whitman	Read Replies (1) \| Respond to of 5810

> What if in the middle of the 3Q you realized that you might owe a > lot more than previously thought of? ie, in the first 2Qs you made > some but figured that your withholdings and deductions, trading > losses etc would cover the extra. > How in the heck can you estimate your expected trading profits or > losses? If you have unequal quarterly income, there's some form you can fill as part of your tax return to avoid (or decrease) penalties for not making equal quarterly payments. Don't recall which form it is, but I've had to fill it out once - it's pretty painful though - essentially doing a mini-tax return per quarter, ergo good record-keeping. Regards, Stew

To: k.ramesh who wrote (2489)	1/4/2000 11:47:00 AM
From: Spots	Respond to of 5810

>> How in the heck can you estimate your expected trading profits or losses? You don't have to estimate anything. You have 15 days from the end of each quarter to figure out what your actual income was before you have to file the "estimate" tax payment for that quarter. You can, if you want to, figure out exactly what your payment should be after the income's in the bank. This isn't necessarily the best strategy (heck, withholding it all on Dec 31 is the best strategy <G>), but if you don't want to estimate, it's certainly possible, legal, and will result in exactly correct tax payments provided you figure right, apply proper postage, have luck with the USPS, avoid the IRS's losing your payment, anticipate congress, face Mecca, and stay in tune with phases of the moon. Spots