Capital Gains?

I have an Indie Contractor status for an offshore firm trading with their capital and sub-account. I am a US resident. Should I pay capital gains tax or no? Technically the firm is paying me, and my income isn't directly from the profits of trading. I currently just have my employer information as indie contractor and freelance web developer (my second job) and mention nothing about trading/investments. Is this a no-no?

 

Advice when you go to prison:

"kick someone's ass the first day, or become someone's bitch"

 

ROFL.


Some years ago, foreign firms in the third world could practically hide your existence as an employee or customer from the US.

The US has changed a lot. Pay for the tax when a foreigner gives you a stick of gum The US can use anti-terrorism laws against you.

The only income that is safe is you become a prostitute.

 

So basically, traders never win.

$78,000 GROSS
-$15,356.25 Federal Income Tax
-$19,500 Capital Gains Tax
-$5,205 VA State Income Tax
-$11,934 FICA
$26,004.75 NET

I thought I was doing great this past year.

 

Whoah too much information, Son. I would have been less shocked if you talked about how you made love to your wife.

However, your applying all those tax rates at the same time. There's a difference with earned income, short/long term gains.......different buckets. Not all the taxes apply.

Go run the free copy of Turbotax/HR block online will you?

 

I'm just trying to determine whether capital gains applies to me or not. I've gotten differentiating opinions from several CPAs.

I reviewed my contract and it states all shares bought under my sub-account are property of the broker and not me, and that they are responsible for all trade loss and profit.

 

And that was just an example.

 

Are you a contract trader taking a cut of profits or a salaried trader trading the firms account? Or just a Joe in another country working in a non-trading role who opened up a brokerage account?

The thing that I am asking is: Do you understand where the money in your monthly check is comming from?

 

Ah, that is the answer to the later question. You have been trading their book. Just like a blue chip Wall Street trader who makes a nice bonus from the banks coffers. It's all Salary. Why do you think you have a Capital Gain?

Is your name on the brokerage account? Something ain't kosher here.

 

Well I get paid a cut, which is a commission. This would be ordinary income, not capital gains.