Forum

How to tax optimize the most with trading, using LLC?
 

Can anyone recommend any tax law books regarding LLC, tax optimizing (to pay less taxes of course) with regards to trading, capital gains etc?

The best video to get started for me was from ziptrader channel:
However, it's just a start, curious if there are any official book publication that spell out the tax codes in a bit more detail.

Re: How to tax optimize the most with trading, using LLC?
 

Just an idea...

Never sell the stock, and you never have to pay capital gains

Borrow money against the stock, pay interest on borrowed money, write off the interest payments on your income tax

Re: How to tax optimize the most with trading, using LLC?
 

That's an idea, but if you do have significant capital gains, and you feel it's going down, borrowing against the stock doesn't seem like such a good idea in that scenario

Re: How to tax optimize the most with trading, using LLC?
 

corporate entities generally have to pay for their data feeds, strongly advise against this unless you are a professional / full time trader yourself

Re: How to tax optimize the most with trading, using LLC?
 

What do you mean by data feeds?

Re: How to tax optimize the most with trading, using LLC?
 

The price / vol / tick data your broker provides you is not free. Brokers pay to stream this data from exchanges and provide it to retail / non- professionals for free, meanwhile charging professionals / corporate entities for it. As soon as you incorporate, you are required to declare your status as a “professional” and thereby must pay for it from there on out. It doesn’t matter if you’ve never traded before in your life and are a total novice / have no formal registration with the SEC / etc, as soon as you begin trading for some entity you are considered a professional and must pay. Otherwise They will only grant you access to their delayed data feed which typically runs on 20min delay

Data feeds can run expensive as well depending on which you subscribe to (120+/month), so I’d strongly advise against it

This is assuming you trade on an intraday basis, if you’re simply BnH latency may not an issue

Re: How to tax optimize the most with trading, using LLC?
 

Covered calls are great for long term stocks, I use it trade around positions.

Re: How to tax optimize the most with trading, using LLC?
 

He is asking for capital gain and trading gain.loss.
IRS has guidelines,read that first.

Re: How to tax optimize the most with trading, using LLC?
 

how'd this thread get unearthed? I havent seen glacier922 in awhile...

Re: How to tax optimize the most with trading, using LLC?
 

It is hard to read when you don't know how to space a sentence properly. :cheer:

Covered calls means you can trade around a position without selling the underlying stock.

Re: How to tax optimize the most with trading, using LLC?
 

if he has the stock and does not mind if it gets called away

Re: How to tax optimize the most with trading, using LLC?
 

Buy to close if you end up wrong, hence trade around a position. It is only called away if you let be so.