"David
Kilo" <callmekilo[at]earthlink.net> wrote:

- quote -

If its not a trader activity, then it is what it is regardless of how you
try to pretty it up with a corporation, LLC, etc. It doesn't lose its
character regardless of what you do.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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callmekilo[at]earthlink.net (David Kilo) wrote:

- quote -

What sort of tax deferral are you expecting? You can't trade
options in an IRA, except for writing covered calls. If
that's your objective, get as much funds into the IRA as you
can, and trade to your heart's content. Of course, you can't
get the money out until later, but maybe that works for you.

If you incorporate, and your corporation's business is
trading securities for your account, you have a Personal
Holding Company. These are discouraged by taxing the income
of such a corporation at extremely high rates.

--
Chris Green

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Let's stay I am a sole prop, pull in 30k in option premium.
But because I work full time, hold some positionss a while,
etc., I can't claim trader status. Can I just be a sole prop
business (Simple IRA) and claim that trading is a part-time
business and shelter the profits? (What if I incorporate?) I
think not, but I wan't to ask the wise souls on here. And,
by the way, even if I could does it make sense to shelter,
pay ordinary income rates down the road versus pay now but
Sec. 1256 reduced rates for non-equity options? Does the
tax-deferred growth off-set the higher rate I will
eventually, in all likelihood, pay?

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