Replies to post #15865 on MATRIX Penny Stocks

[EdgarAllanPoet]

Regarding the trader status....Only the expenses are filed on the Schedule C (thus a loss) and there would be No SS or Medicare taxes due. All of the Buys and Sells (and hopefully net gains) are recorded on the Schedule D.

Hope this helps answer your question on the tax savings with Trader Status....

[wowtapper14]

I recommend for all you self-employed day traders here are a couple tips:
-come up with as many expenses as possible :)
Or
Incorporate as a Sub-Chapter ”S” or “S Corporation”
-Then you don’t have to pay Social Security Tax.
-Also you become a shareholder of your own corporation.
-The only drawback is you are an employee of your own corporation and have to set a salary. I suggest minimum wage
-But all net gains then get passed onto YOU as a Shareholder of your corporation.

Hope this helps. It is to late for 2003 but you could file for 2004.