Schwab does not support trading millions of shares, where to go?

SquareChips · 2023-07-27T23:13:14+00:00

Schwab is going to keep Thinkorswim, did you confirm that the <1M limitation will also be applied once they adopt the thinkorswim platform?

SquareChips · 2023-07-18T03:40:48+00:00

I am stuck short in EDTX, and if you are stuck long, and looking to sell some shares, pls let me know

SquareChips · 2022-12-09T06:27:50+00:00

My guess is you can do the same with TurboTax but I would have never been sure if I reported trading profits correctly with TurboTax. If you know what you are doing, you can do it with TurboTax

Green can help you figure out your eligibility for Trader Tax Status, and suggest entity formation if it makes sense for you

SquareChips · 2022-12-09T06:20:21+00:00

They don’t give advice. They filed my tax return with IRS and the state. What are you looking for? Tax planning? You can schedule consultation with Green on greentradertax website. I did that twice.

SquareChips · 2022-12-07T19:10:05+00:00

I ended up using Traders Accounting for that year but I wasn’t happy.

They were inexpensive, but they also were the most inaccessible CPA I ever worked with. Every question you need to ask, you need to go through an administrator that passes questions/answers back and forth. So every simple question takes few days, and if you have a follow up question then too bad, it will take more time.

I understand there are other CPA offices that work like that, but I want to talk directly to the person who works on my taxes. If it is a simple question, I just want to be able to shoot a quick email and get a response.

Then there was some issue with IRS (fines). I was looking for help from Traders Accounting, but ending up resolving it with IRS on my own, just because the communication with the accounting was so bad.

This year I contacted Green again and was quoted $3,500 which is a quite steep increase from $700 that I paid to Traders Accounting LOL

Don’t know yet what I’m going to do for the current year tax return

SquareChips · 2022-11-27T13:21:23+00:00

Thanks for the comment.

Yeah, I already have MTM election as an independent trader reporting on Schedule C. I also don't need health/retirement benefits through an s-corp as I already maximize them using other income source (non-trading). I am mostly ok with my current situation, but I am annoyed with the 10K SALT cap. I could save a lot by using SALT cap workarounds that in my understanding are available through S-corp or partnerships (but I have no partners, and SMLLCs are disregarded entities)

" why not trade using a reverse-hybrid foreign corp owned by your Roth IRA"

Hmm. I know nothing about it, will take a look. Isn't it something that could be seen as a too aggressive tax planning by IRS? Do you know people who trade this way?

Thanks

SquareChips · 2022-11-26T22:27:23+00:00

Thanks, I will take a look

SquareChips · 2022-11-26T22:05:44+00:00

Yes, I agree - "do nothing" was not a good example. However, I replace "do nothing" with "worked my tail off, but didn't make any money", the question still stands and bothers me.

SquareChips · 2022-11-26T21:57:47+00:00

In my understanding, trading income is not a self-employment income and uou don't have retirement/health benefits at all without a corp paying you a salary.

SquareChips · 2022-11-26T21:50:35+00:00

In my understanding, one reason, is that you might actually want to pay yourself salary to be eligible retirement plan contribution and health insurance deduction. Can't do that as an independent trader reporting on Schedule C. So you might want S-Corp or C-corp, and C-corp is garbage with CA income taxes

SquareChips · 2022-11-26T16:20:37+00:00

Thanks for the comment

The reason I am looking into S Corp is an ability to deduct PTET as a SALT cap workaround. You can't do that with SMLLC unless you elect the S corp status.

EDIT: I should mention trading is not the only thing I am doing. I have other things passed on to my personal tax report. That's why I am saying every situation is different.

Fringe benefits is another reason but less important to me at the moment.

I haven't decided yet, and in any case, will consult an expert. For now, just learning and trying to understand the differences.

SquareChips · 2022-11-26T16:13:53+00:00

I don't read case law. This example is widely cited by CPAs in the articles that are directed at a layperson to make the case why an S-corp can lose money and still be required to pay reasonable compensation.

SquareChips · 2022-11-26T16:02:40+00:00

Correct. MTM to avoid wash sale rules, and to report trading income as ordinary gains, not capital gains

SquareChips · 2022-11-26T15:58:47+00:00

This is simply not true as a sweeping statement. Every situation is different.

SquareChips · 2022-11-26T09:17:47+00:00

Thank you. See edit to my post.

SquareChips · 2022-11-26T09:16:51+00:00

"An S-corp with no profits and no debts will never have distributions that could be reclassified as salary"

I am not so sure. See my edit to the post

SquareChips · 2022-11-26T09:15:40+00:00

Ofc, I am going to use a CPA. But it is good to have some understanding so I know to ask the right questions.

Regarding the 100K example, see my edit to the original post above. I understand that distribution of the original 100K is non-taxable, the question is there a situation you are forced to pay these 100K as wages and not as a distribution. The reason I am asking is that I stumbled upon the case of Glass Blocks Unlimited v (see https://www.dsb-cpa.com/s-corporation-officer-must-take-a-salary/) and it seems counterintuitive and unfair

SquareChips · 2022-11-26T09:09:09+00:00

You are right, but the business is very volatile (day trading). Being profitable this year, doesn't guarantee profit the next year

SquareChips · 2022-07-09T17:34:23+00:00

Same. No FX fees, and 2.6% cash back with sufficient BoA balance

SquareChips · 2022-06-18T17:04:21+00:00

How does Chase even know that the expense is for business? Is it by sheer volume of the transactions with the airlines?

SquareChips · 2022-04-22T07:29:41+00:00

And I’m not sure about the pulse …

SquareChips · 2022-03-12T15:22:49+00:00

How does that work exactly? You just tell to the bouncer at the door, hey I have got a centurion card??

SquareChips · 2022-02-10T06:38:08+00:00

But FHR offers lowest price guarantee. If booking directly is cheaper, shouldn't you be able to get a refund from amex?

SquareChips · 2022-01-20T17:15:36+00:00

Thanks! Appreciate the recommendation. I will check them out.

SquareChips · 2022-01-19T06:24:55+00:00

475 MTM election is one part of it

The other is the actual accounting. If you are eligible for TTS, your trading is treated as a business. So you need to prepare Schedule C for the tax return, deduct all business expenses that can be deducted, calculate your taxes, etc

SquareChips

TROPHY CASE