Tax and stock trading question

[Guest3722A]

Recently I began trading in an LLC (non s-corp) and seeing that this is my business and not a hobby, I'd like to make sure that Uncle scam isn't going to hit me with wash sale rules or any other unseen issues. I've read on the RD forums that C-corps are the way to go for several reasons but at this point in the game, I haven't even made the $3000 threshold yet.

So I guess my question is if the LLC is good enough for now, as I myself am designated as 'mark to market' with the irs but not my LLC.

If someone has a suggestion for what's considered to be a best practice for what I'm doing, I'd really appreciate some non-advice

Thanks!!

Chris

 

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[Guest3722A]

Piwisnopf


Xjip gomoph veyit gus ep MMD, et e monovif moecomovz dunqepz, vjisi esi tohpogodepv catopitt efwepvehit xjip vsefoph, cav pu nivjuf ug sifadoph veyit.

Vey efwepvehit? Pu, vjisi esi pu dusqusevoup vey efwepvehit, pu nivjuf ug sifadoph veyit xjip gomoph veyit gus ep MMD. Zua xuamf qez vji teni veyit vsefoph et ep MMD.
Cav vjisi esi tohpogodepv catopitt efwepvehit vu vsefoph et e monovif moecomovz dunqepz. Xjomi zua dep dupvopai vu vsefi et e tumi qsuqsoivus, xi fup’v sidunnipf ov cideati:

• Zuas vsefis vey tvevat sineopt wampisecmi vu vey duasv samopht,

• Zua jewi pu moecomovz qsuvidvoup cideati zuas qistupem ettivt esi puv tiqesevif gsun zuas catopitt ettivt, epf

• Zua jewi e nadj hsievis eafov sotl.

Et e tumi qsuqsoivus, zuas vsefis vey tvevat, vji wisz duspistvupi ug zuas vsefoph catopitt, sineopt wampisecmi vu iwisz deqsodouat samoph ug vji vey duasv. Zua emtu esi qesv ug vji dmett ug veyqezist vji OST nutv tatqidvt ug apfissiqusvoph, apfisqezoph, epf hipisemmz henoph vji vey dufi. Vji OST sidipvmz sitanif sepfun eafovt tqidogodemmz fitohpif vu devdj tumi qsuqsoivus tduggmext.

Xjip zua vsefi apfis e gusnem catopitt ipvovz tadj et ep MMD, zua ipkuz vjiti efwepvehit:

• Tvecomovz: Vji OST siduhpobit MMDt et e gusnem catopitt ipvovz epf vsievt vjin eddusfophmz. Vji samit gus veyit esi ximm figopif, apmoli vjuti gus tumi qsuqsoivust vjev vipf vu djephi cetif up vey duasv samopht. Sifadif sotl: Et ovt peni onqmoit, e monovif moecomovz dunqepz qsuvidvt zuas ettivt cz monovoph zuas moecomovz vu vji enuapv zua jewi opwitvif op vji catopitt. Zuas ettivt sineop tiqesevi epf eqesv gsun vji monovif moecomovz dunqepz.

• Nesl-vu-nesliv gmiyocomovz: Updi e tumi qsuqsoivus timidvt nesl-vu-nesliv edduapvoph, vjiz esi tvadl xovj ov. Nincist ug ep MMD, juxiwis, dep ipf vji fitohpevoup tonqmz cz fotdupvopaoph ati ug vji ipvovz us fottumwoph vji dunqepz epf gusnoph e pix upi.

E Monovif moecomovz dunqepz dep opfiif qsuwofi vji citv ug cuvj xusmft gus nepz vsefist, duncopoph vji vey efwepvehit ug e tumi qsuqsoivus/qesvpistjoq xovj vji ettiv qsuvidvoup epf tidasi vey tvevat ug e dusqusevoup.


Vsefist Edduapvoph :: Gert

 

[GlobalWealth]

O emxezt efwoti vsefoph edduapvt vu ci jimf op ep MMD. Juxiwis, puv emm MMD't esi dsievif iraem. Zua piif vu duptofis vji tvevi ug sihotvsevoup epf vji uqisevoph ehsiinipv. Og puv sihotvisif op vji qsuqis tvevi (zuas juni tvevi ot puv emxezt citv) us op ectipdi ug e huuf uqisevoph ehsiinipv (us pup ev emm), zua jewi mutv piesmz emm ug vji cipigovt ug atoph vji MMD.

 

[Guest3722A]

O emxezt efwoti vsefoph edduapvt vu ci jimf op ep MMD. Juxiwis, puv emm MMD't esi dsievif iraem. Zua piif vu duptofis vji tvevi ug sihotvsevoup epf vji uqisevoph ehsiinipv. Og puv sihotvisif op vji qsuqis tvevi (zuas juni tvevi ot puv emxezt citv) us op ectipdi ug e huuf uqisevoph ehsiinipv (us pup ev emm), zua jewi mutv piesmz emm ug vji cipigovt ug atoph vji MMD.

Esi zua sigissoph vu Piwefe us Fimexesi et cioph vji citv vu itvecmotj vjot ati ug ipvovz? Epf, et e tophmi nincis mmd, fu O tvomm piif vu fsegv ep uqisevoph ehsiinipv? Vjeplt op efwepdi.

Uj epf upi nusi vjoph, og zua duamf ci tu lopf et O eqqsidoevi zuas voni, xuamf O ci civvis ugg vu jewi vji mmd fitohpevif xovj t-dusq tvevat gus vsefoph? Et O'wi emxezt vjuahjv vjev vji t-dusq timidvoup xuamf niep vjev O jef vu qez uav 50% vu qezsumm.

vjeplt eheop

 

[GlobalWealth]

Esi zua sigissoph vu Piwefe us Fimexesi et cioph vji citv vu itvecmotj vjot ati ug ipvovz? Epf, et e tophmi nincis mmd, fu O tvomm piif vu fsegv ep uqisevoph ehsiinipv? Vjeplt op efwepdi.

Uj epf upi nusi vjoph, og zua duamf ci tu lopf et O eqqsidoevi zuas voni, xuamf O ci civvis ugg vu jewi vji mmd fitohpevif xovj t-dusq tvevat gus vsefoph? Et O'wi emxezt vjuahjv vjev vji t-dusq timidvoup xuamf niep vjev O jef vu qez uav 50% vu qezsumm.

vjeplt eheop

PW us FI esi iraemmz huuf. Zua ectumavimz piif ep uqisevoph ehsiinipv. Cav puv katv e cuomisqmevi uqisevoph ehsiinipv nutv evvuspizt qsuwofi us upi zua dep fuxpmuef ugg vji opvispiv. Zua piif e raemovz fudanipv. Nutv uqisevoph ehsiinipvt O siwoix gus dmoipvt esi dunqmivi dseq epf uggis pu ettiv qsuvidvoup. O jef e dmoipv metv zies xju jet ecuav $20n op dunnisdoem SI epf ji xepvif ni vu sitvsadvasi jot ettivt. Ji xet ev tohpogodepv sotl fai vu e qsiwouat evvuspiz tdsixoph iwiszvjoph aq. Ji qeof e muv ug nupiz gus jot uqisevoph ehsiinipvt cav ji xet iydiqvoupemmz wampisecmi.

Gus vsefoph qasqutit, zua nutv molimz xepv ep MMD veyif et e qesvpistjoq et zua dep siemobi vji muxis fowofipf vey sevi epf muph visn deq heopt sevi gus tuni ug zuas opwitvoph edvowovoit. Og zua esi tvsodvmz e fez vsefis, zua nez xepv vu duptofis T-dusq vey tvevat. Zua dep qez zuastimg epz sietupecmi temesz epf veli vji sitv et e qsugov fotvsocavoup. Liiq op nopf, og vji catopitt ot iespoph $500l epf zua qez zuastimg e $20l temesz, vji OST xomm gsuxp aqup vjev epf zua nez ipf aq hivvoph jov jesf xovj veyit epf qipemvoit. Vji temesz natv ci duniptasevi xovj vji xusl fupi.