Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0

Do you think this would hold up? Worth doing? Anyone with experiance


Place your trading capital in a entity structure. In most cases, you would set up a "C" corporation as your money management firm. This would give you all the benefits and perks of a corporation. It would also create a second tax bracket, effectively splitting your income into two lower tax brackets, individual and corporate. Now, instead of simply transferring your trading capital to the corporation, you will transfer it into a limited partnership. Your corporation would be the general partner. You, as an individual would be the limited partner. This strategy allows you to take a portion of your gains as a limited partner and have them flow directly to your personal return with no social security taxes, and have the rest of your gains flow to the corporation, where you get the aforementioned benefits.

thanks

Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement