6.7 C
New York
Friday, March 29, 2024

Comment by GrassHopper67

View Single Comment

  1. GrassHopper67

    I have been researching Options and Taxes.  It appears there are a couple of different directions one can go with this. One option is to report everything as investment income with long-term/short-term capital gains/losses. This method will NOT allow for deductions of expenses you might incur (ie research materials, PSW membership, home office, etc.) and on all short term gains the income tax will be at your ordinary rate while long term gains will be at capital gains rates (15%), if it remains there.

    The second option is to treat this as a business where all your income is regarded as ordinary income subject to self-employment tax but you can now deduct any ordinary or necessary expenses you have to generate this income.

    Does that pretty much sum it up? 

    Oh, I suppose, depending on the amount of expenses one might have, the self employment tax can be offset enough where you end up paying less overall tax using option 2. 



Stay Connected

157,450FansLike
396,312FollowersFollow
2,280SubscribersSubscribe

Latest Articles