Aloha Toof --
Thanks for your thoughtful comments about incorporating. I'll start right off by admitting I have no expertise whatsoever in this area. Bob Eldridge writes on page 37 under the "C" Corporations heading: QUOTING ... "Because it is a business, a corporation has at least two advantages that an individual does not. first, it has a lower tax rate. On income up to $50,000, ,corporations will pay 15% in income taxes compared to around 26% for individuals. ...savings of around $6,000 ($5,500 to be more precise.) He continues, as your income increases above $50,000 you can shift that extra income to a different corporation to theoretically keep each entities' income below $50,000. If your income continues to rise, a nice problem to have by the way, you can continue to create new entities."
He goes on with three additional pages of ideas, one of which is to start two or three corporations, with one of them being a leasing company and he suggests moving most of your hard assets such as cars, boats and real estate into this corporation. Etc. etc. etc. He goes on to recommend a book by Wade B. Cook called "Brilliant Deductions which he states is a reference for turning personal expenses into business expenses. Next time you're in Border's or Barnes and Noble, take a peek at pages 36 to 41 in Eldridge's book, "How to Make a Living in the Stock Market." Anyway, in this section of his book, he makes it sound all on the up and up, but certainly not an undertaking for the tax novice on April 15.
Please don't think I am promoting anyone's book. As I mentioned, I've just started educating myself and these are simply the references I have become acquainted with so far. I'll also be the first to say that I don't necessarily believe everything I read which is why I am open to the opinions of others who are more knowledgeable than me.
Toof, I truly appreciate your advice on the incorporate idea and it will take more than a half dozen pages of a book someone wrote 9 years ago to convince me that's the best thing to do. I am definitely in agreement with you about staying away from daytrading and trading less being cheaper. Thanks also for your info on the Roth / Traditional IRA. It would be helpful to hear from any members here who might actually have incorporated to get their opinion as to whether it is something they would do again if they could turn back the hands of time. I am open to all thoughts and ideas.
Many mahalos !!!
Hook
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