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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: GT who wrote (358)	6/22/1998 6:32:00 PM
From: lizard lick	Respond to of 1383

Thank you Colin.

To: GT who wrote (358)	6/22/1998 9:17:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 1383

Gorcon, Please re-re-re confirm this for me as this would make my day - if not my year. . There is absolutely NO WAY that a TRADER (not to be confused with an INVESTOR or a DEALER) is subject the SECA tax on his trading gains. . What would be subject to SECA might be a fee you charge for consulting on trader strategies you render to others, for example. . There are court cases where taxpayers/traders VOLUNTARILY paid the SECA tax (so they could take a pension deduction, for example) and the Tax Court FORCED them to reverse the statnce. . Hope you make enough $$$ to replace the old job. BTW there's nothing that says you can't have BOTH jobs, on TWO DIFFERENT Schedule Cs. . If your fear is: I decided I would maintain my builder status so as not to have the irs try and classify me as a self employed investor/trader THERE IS NO WAY, NONE, NADA, EVER ANYWAY THAT AN INVESTOR OR NORMAL TRADER WOULD BE SUBJECT TO SECA. . ONE POSSIBLE EXEMPTION (VERY RARE CASE) IS IF A TRADER ELECTS OPTIONALLY TO GO "MARK-TO-MARKET". THIS ISSUE NEEDS TO BE ADDRESSED BY CONGRESS - OR THE COURTS. IT HAS NOT BEEN TESTED OR DEFINED TO DATE. . Colin

To: GT who wrote (358)	6/23/1998 2:11:00 PM
From: WallStBum	Read Replies (2) \| Respond to of 1383

Gorcon - No SE on capital gains. Suggested readings Ted Tesser's Trader's Tax Survival Guide. As a CPA and trader, I found this book very informative on this subject and many other tax tips, etc. You can order it online through Barnes and Noble. Search for it at barnesandnoble.com . Also, to see what others think of it try a general search on SI to see what others say. Colin may have other suggested readings or he may like this book too. BTW- I understand your frustration with S.E. tax, but remember that theoretically the tax is the equivalent of FICA/Social Security with the presumption that you leave no money in your business and payout 100% of your earnings as "salary". People forget that their employer also pays 7.65% on salary paid as well as you paying 7.65% for a total of 15.3%. The SE tax even builds in the deduction of the payroll tax expense that an employer would get. I know that doesn't help, but that's the rules. The day we move to a system where ALL taxes including FICA are sent in to gov't monthly just like your mortgage payment and withholding is done away with - that will be a great day. Because then we'll all realize that the enormous tax burdon, not just s.e. tax, is a crime against Americans.