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To: jjs_ynot who wrote (124701)	1/11/2001 4:15:58 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

HP warns...

To: jjs_ynot who wrote (124701)	1/11/2001 4:28:37 PM
From: Elmer	Read Replies (1) \| Respond to of 186894

Re: "Do you know if you can set up an S-Corp to defer paying tax on short term capital gains from trading until the proceeds are distributed to the owner(s)?" I ran a Nevada "C" Corp for a while, mainly for trading and other forms of investing. There are games you can play but the gains from trading were taxable on the corporate level. EP

To: jjs_ynot who wrote (124701)	1/11/2001 4:58:01 PM
From: The Duke of URL©	Respond to of 186894

S-Corp to defer paying tax on short term capital gains from trading until the proceeds are distributed to S corp earnings are DEEMED distributed immediately, whether or not they are physically or actually distributed. 26 USCA §§1371 et. seq. Nice try, though.

To: jjs_ynot who wrote (124701)	1/11/2001 9:54:17 PM
From: willcousa	Read Replies (1) \| Respond to of 186894

S Corps are taxed like partnerships so that income and deductions pass through to the owners tax returns on a real time basis. C corps. generally are not taxed until profits are distributed to the owners with the big, bad exception for what are called personal holding companies. These are companies whose income is predominently passive in nature like dividends, interest and capital gains. If one were classified as a trader for tax puposes, that is, in the business of trading, the income might not be considered passive but active. I don't have the ready ability to be more definitive but be very careful as personal holding companies also get penalized - so they are worse than just paying taxes. You might look into whether your positions might be straddles where a series of trades could be considered to be a single transaction. These usually require that you make an election in advance as to how the series is to be treated - that is you elect a position before you know how the trade is going to come out.