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Aired On
Jul 14 2021
12:00 pm - EDT
Image Trader Tax Law: 2021 Mid-Year Update Watch on GoTo Webinar

Join Robert A. Green, CPA of GreenTraderTax, for tax developments impacting traders, including entities, a SALT cap workaround, and President Biden’s tax hike proposals on investors.

  • A new entity qualifying for trader tax status (TTS) can elect Section 475, providing an exemption from wash sale loss adjustments, the $3,000 capital loss limitation, and eligibility for a 20% QBI deduction. In addition, an S-Corp can deduct health insurance premiums and a high-deductible retirement plan like a Solo 410(k). Mid-year is an excellent time to consider a new TTS entity,
  • An entity might offer a SALT cap workaround to circumvent the $10,000 limit on state and local itemized deductions.

Biden’s tax proposals in Treasury’s FY 2022 Greenbook curtail long-term capital gains for taxpayers making over $1M and closes the carried interest tax break for fund managers earning over $400,000. However, Biden’s Greenbook does not offer to remove the contentious SALT cap, and it retains the 20% QBI tax deduction. In addition, it does not propose a financial transaction tax.

Contributed By:

Green Trader Tax

Presented By:

head shot Robert A. Green

Robert A. Green


Disclosure: Green Trader Tax

This information is educational. Where specific tax advice is necessary or appropriate, you may wish to consult with a qualified tax advisor. Robert A. Green and the Green companies are not affiliated with Interactive Brokers.

IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.

Disclosure: Interactive Brokers

Information posted on IBKR Webinars that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Webinars are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Green Trader Tax and is being posted with permission from Green Trader Tax. The views expressed in this material are solely those of the author and/or Green Trader Tax and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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