Same here!!! When you were talking about half of what you earn, I had a suspicion that you might be from Canada because face it, there is only a few countries in the world where the government takes away half of what you earn in the form of income taxes so once your income reaches a certain point, the more money you make, the less income you have at the end of year. LOL You know when everybody was so fearful of having Trump as a president and all those Americans wanted to cross the border to come to Canada, just on that taxation note, I would love to cross the border the other way to go to USA. LOL Yes if you incorporate you DO get taxed twice but I think the whole idea of incorporating is to leave the amount money that you don't really need for living expenses in the corporation where it will be taxed at a lower rate of corporate tax and take only the amount that you need to live on out in the form of dividend. So how much you save in taxes I guess would depend on how much would the aggregate tax be once you combine both the corporate tax and the individual income tax. So I am going to look at it from a math's point of view. Let's say you make $200K per year. So if you don't incorporate, then the tax rate, fed + prov. is more like 45% unless you live in Nunavet, so the taxes you have to pay is: 200000 X 0.45 = 90000 so at the end of the year you only end up having $110,000 in the pocket. But let's say you incorporate and since you only need $60K to live on so you leave $140,000 in the corporation getting taxed at corporate tax rate. I don't know what's the corporation tax rate is in Canada so 12% on average provided your business makes less than $500K according to this: http://www.taxtips.ca/smallbusiness/corporatetax/corporate-tax-rates-2016.htm. And the effective tax rate on a $60K income will be about 18% according to this: http://www.taxtips.ca/taxrates/canada.htm. So: 140000 X 0.12 = $16,800 And for the income that you took out of the corporation, you pay: 60000 * 0.18 = $10,800 In total, you would pay: 16800 + 10800 = $27,600 at a combined tax rate of: 0.18 + 0.12 = 0.30 = 30% MUCH better than the 45% tax rate!! At the end of the day you still have: 200000 - 27600 = $172,400 left over a (172400 - 110000) / 110000 = a 57% increase You just can't take it out of the incorporation and use it. LOL So if you make $100K and over, you should DEFINITELY incorporate. Sill 30%??!!! Would love to find out how to become US citizen just for taxation purposes.
Sometimes my business fails to bring in enough so the account gets slaps, and sometimes the business funds the account, between the 2 I some how sadly just kinda barely get by, I'd prefer rich or dead to be honest.
A very long time. I started dabbling with trading as a teenager, now I'm 44. I think I'll be consumed by it for the next 50 years as well!
Not necessarily true. I think you can work on developing a profitable strategy as a hobby. When risk (i.e. real money) becomes part of the endeavour, then I think it ceases to be a hobby.
Am downsizing my trading and life, so it was adios time, contracts ended. I am almost in remission and want to do other things in life than be monitoring.