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Run your stock account as sole proprietorship and partnership


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I think we need much more info as to what you are trying to accomplish.

A proprietorship indicates that it is an active business in which case you could loose your capital gains advantage.  The only "proprietorships that I've seen are from "day traders" trying to deduct their losses.

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if you "DONT" run the partnership, you can use this structure to give partnership interests to your heirs and the amount of the estate will be lessened b/c of lack of control (the value of the partnership will receive a magic discount b/c of lack of control).


Sole proprietorsip implies Schedule C, in which you will need to basically be a full time trader.  I wouldn't want to fight the IRS on this position if you had other full time part time work.

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I was just looking into ways to cut down my capital gain taxes for my in-laws. They lived in Canada now. If they run their stock accounts like a business or set it up as a fund, etc.. will they be able to keep more of the gain and only paid taxes if I decide to liquidate the fund?


I may do it for mine too, but mine is very small so it's not a big deal.

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