Re: October [censored] thread
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For those who trade for a living on their own account and dont pay income taxes, but only capital gains taxes, what do you say your proffesion is? Self employed? I doubt you need to set up a company as cap gains are already taxed lower than most tax rates, so what do you do?
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J,
Are you asking US citizens? If so, I think you're confused here.
Assuming that we're trading on a non-retirement account, we have to pay taxes. Short-term is same as your income tax bracket. Long-term as 15%. Those who have no income but only capital gains will be probably taxed via AMT.
Now let say you earn 90k in capital gains and only in 10k in your regular job, your tax bracket is actually 100k. The IRS will tax you via the AMT method and get its moneys.
PS. I might miss a small detail here or there but I think I painted a pretty good big picture [img]/images/graemlins/cool.gif[/img]
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