Year-End Planning With Trading Entities
Oct 22, 2014 at 4:15 pm EST
Trading gains are not considered earned income, so traders need an entity to pay the owner/trader compensation to unlock valuable employee-benefit-plan tax deductions, including retirement and health insurance premiums. (Traders generally save thousands of dollars with these strategies.) S-corps and C-corps should execute payroll and partnerships administration fees before year-end. In this Webinar, we will discuss important tax matters to execute with entities before year-end, including:
- Setting up payroll with Paychex.
- Determining appropriate or reasonable compensation to maximize employee benefits.
- Choosing the best retirement plan.
- Dual entities: moving income from the trading partnership to the management company S-Corp or C-Corp to maximize employee benefits on the management company.
- Forming a new trading entity or management company before November to execute employee-benefit plan strategies before year-end.
- Making sure your entity qualifies for trader tax status (business treatment) to execute employee benefit deductions.
- Considering a Section 475 MTM internal election for the entity within 75 days of inception.
- Choosing accounting solutions.
- Answering questions.