Will the 2013 Fed Policy be reversed, possibly beginning with tapering
in early 2014? A. No, while the Fed may try to
test the waters from time-to-time, if interest rates were to rise
appreciably higher, then the U.S. economy would either go into
hyper-inflation (if Congress rapidly accelerates needed high interest rate
borrowing to cover the higher interest cost) or would go into a depression and in an extreme case
would revert into potential anarchy (if Congress curtails borrowing and
spending). Reasoning: If interest rates rise even by a few percentage
points, that could result in a doubling or tripling of the U.S. debt
service costs. With that much allocated to covering debt service
there would be significantly less available for discretionary spending and even
for some other so-called mandatory spending (Medicaid, SNAP, U.C., etc.).
Therefore, to avoid these apocalyptic risks, the Fed is trapped into
maintaining low interest rates for the foreseeable future.
- TraderStatus (11/21/13)
It's imperative that the Fed begins to taper. We've seen real
bubble-like markets again.
- Larry Fink, BlackRock, world's largest money management firm
If short-term interest rates exceed the 10-year bond yield (Inverted
Yield Curve) this would indicate a turn into recession.
Monetary Policy, Economic Cycle, Valuation & Sentiment are at 70% (of my
proprietary formula) showing that the S&P is undervalued by 15%.
- Elaine Garzarelli (10/10/13 with S&P at 1690)
The 2013 holiday season is going to be horrific for the department
stores; for the apparel retailers. AAPL, KORS UA, NKE and TJX are going to take a lot of dollars out of other
retailers' pockets. A new paradigm: when you take AAPL, Samsung, WMT
and AMZN they are taking more than 50% of the growth in retail and
that's going to accelerate as you get into the 2013 year-end holiday season.
- Steve Kernkraut, Durbar Capital (10/10/13)
Crude oil volatility peaks approximately every 32.3 months (roughly in
two to three year cycles). It is now 31 months since April 2011
when the WTI-Brent price variance spiked - and that was 32 months after
a major round of volatility that topped out in July 2008. If the oil
price volatility is oscillating in a repeating two to three year cycle,
then we can expect to see another wave of instability in oil prices
occur in late 2013 or early 2014.-
Tom Therramus (10/7/13) After (or with) recent declines in WTI,
the volatility has begun and many stocks such as EOG, PXD, VLO & XEC
seem to be following the action [real
time price of WTI].
Considering the opinions avove... if the Fed tapers I am reminded of the
infamous quote from Joe Granville in January 1981 "Sell Everything!"
- Joe Granville, (RIP 9/7/13)
Be fearful when others are greedy... and
greedy when others are fearful. - Warren Buffett
The average investor in the market is a blind man crossing the
street. He can’t compete with professionals. -
Trees don't grow to the sky. - Louis Rukeyser
There is only one side of the market and it is not the bull side or
the bear side... but the right side. - Jesse
To me, the tape is the final arbiter of any investment decision. I have a cardinal rule: Never fight the tape!. -
A person can succeed at almost anything
for which they have unlimited enthusiasm. -
It always seems impossible ... until it is done.
Never go on margin until you have
mastered the market, charts and your emotions. Margin can wipe you out.
There are two systems of taxation in our country: One for the informed
and one for the uninformed. - Judge Learned Hand
There should be tax increases. Speaking personally, I think there are a
lot of very rich people out there whom we can tax.
- Sen. Barney Frank (youtube)
Collecting more taxes than is
absolutely necessary is legalized robbery. - Pres. Calvin
The most dangerous thing you can
do to any businessman in America is to keep him in doubt, and to keep
him guessing on what our tax policy is. - Pres. Lyndon B
Our tax code is so complicated,
we've made it nearly impossible for even the Internal Revenue Service to
understand. - Treas. Paul O'Niell
I have wondered at times about what the Ten
Commandments would have looked like if Moses had run them through the
- Pres. Ronald Reagan
Looking for tax
trading is fast... exciting...
profitable... challenging... and tax deductible!
When you tally up your results each year - do you see the
capital gain tax taking away too much from your hard won trading profits?
As an active trader do
you find that you have too little time at the end of the day
to do the necessary tax planning to avoid paying excessive income taxes?
What is the real story behind all the talk about the tax benefits from
choosing trader status and electing mark to market?
When is a CPA firm needed?
Serving Traders for over
We'd Like to hear from you
Here at TraderStatus.com™ we will bring together in one place the
information necessary to help you survive unnecessarily high short-term
capital gain taxes, self-employment taxes and state and federal income
taxes. To accomplish this, often a separate trading entity is the
answer, but just as often we avoid it as not being cost effective in a
Many traders do
not yet even realize that they are paying far too much to
the Federal Government. Existing, proven legal
procedures, which in many cases can significantly reduce
taxes each and every year, are available to anyone
qualified to elect to use them.
As we all
eventually learn, those low capital gain tax rates of
15% or lower are not available for the daytrader's lightning fast trading profits. Rather,
an individual daytrader's gains (or losses) are
subject to the higher ordinary income tax rates!
securities traders may incur substantial costs with
on-line fees, commissions, real-time data-feeds, computer
equipment and so on. The Internal Revenue Service, on
their own, do not treat most taxpayers very fairly when
it comes to deducting these expenses. Leaving it up to
the IRS publications and instructions, at best, a
taxpayer must first qualify to itemize his deductions on
Schedule A - making those deductions subject to a 2% of
Adjusted Gross Income (AGI) reduction and for some high-income taxpayers even an additional 3% of AGI reduction.
Please take the time to read and understand the information found on
our web site and also on the Discussion Board
as it can be very helpful to you when preparing your taxes and when
planning your tax strategies. Every month we hear from taxpayers
who found this web site too late or after they already paid someone
for a download that contained nothing more than the basic information
here available to you for free. Taxpayers who were ill-advised by normally very competent CPAs and other tax practitioners,
but for whom the tricks and traps
of Trader Status were unknown to them.
A good CPA does not need to know everything, he only needs to know
where to look it up when a problem arises, or when he's doing your tax
planning. Unfortunately the hard facts are that, when it comes
to traders in securities and traders in commodities, many tax advisors have
no clue that there even is a Trader Status issue to look up, let alone
having the practical hands-on experience necessary to be aware of the tricks and traps
to be found!
Proposed IRS Regulation 1.1411-5 targets gains from securities
traders, futures traders and forex traders
for imposition of the 3.8% surtax.
Odds of being audited:
IRC §1411 - November 30, 2012
1:8 taxpayer earning over $1MM were audited in the past year.
1:25 are the odds for individuals earning greater than $200,000.
earning less than $200,000. 1.6MM tax returns were audited, out of
141MM form 1040 returns filed. 8 out of every 10 audits resulted
in additional taxes being assessed. Corporations: 1:100 odds for
those with assets under $10MM.
derived from IRS announcement, January 5, 2012
For 2013 as was the case for 2012 & 2011, taxpayers with any financial account maintained by a foreign
financial institution or any securities issued by someone that is not a
U.S. person may be required to file IRS Form 8938 along with their
regular income tax forms. Taxpayers are subject to a $10,000 late filing
penalty and the burden of compliance for some European
institutions is too expensive and will result in
closing accounts held by U.S. citizens.
derived from IRS announcements, January 2012