trading stock account taxes high in america how does one beat legally the tax man with trading account?

Answer 1

I will inform you the several leagal and illegal way to do this:

A. Play with your IRA money (SEP or some other retirement accounts):

Benefit:
When you make money, there is no immediate tax consequence until you pull out the money.

Unfavorable:
When you loss money, you cannot deduct it immediately.

B. Setup as a day-trader

Benefit:
When you loss money, you can deduct all investment income immediately.

Unfavorable:
When you make money, you are required to pay income tax(as ordinary income rate) and SE tax.

Annuity/Life insurance Accounts:

Benefit:
No immediate tax consequence. And you can trade within the fund as many times as you want.

Unfavorable:
Limited choices for the fund. And no stock trading.

The offshore:
Foreign trusts
Foreign corporations
Foreign (Offshore) partnerships, LLCs and LLPs
International Business Companies
Offshore private annuities
Offshore private banks
Personal investment companies
Captive insurance companies

Favor: No tax.

CON: IT IS ILLEGAL

Answer 2

It does not get taxed based on the withdrawal. It gets taxed in keeping with what earnings (capital good points) you made once you sell. once you're making money on your acc't, there's a tax on it, whether you do not withdraw it from the acc't or whether you reinvest the money.