💡Moving to Puerto Rico can help traders pay zero income tax on their trading profits.
💰Utilizing tax-deferred retirement accounts such as IRAs can significantly reduce taxable income.
🔒Backdoor conversions allow traders to contribute to a traditional IRA and convert it to a tax-free Roth IRA.
🔎Day trading in a Roth IRA can eliminate income tax on trading profits.
💼Structuring a small business can create additional tax-saving opportunities.
How can moving to Puerto Rico help me save on income tax?
—By becoming a Puerto Rican resident, you can take advantage of the tax benefits that allow you to pay zero federal income tax on your trading profits.
What are the advantages of using a tax-deferred retirement account like an IRA?
—Contributions to a traditional IRA can reduce your taxable income. Additionally, all the growth inside the account is tax-free, allowing your investments to compound over time.
What is a backdoor conversion?
—A backdoor conversion is a strategy that involves contributing to a traditional IRA and then converting it to a Roth IRA, allowing you to take advantage of tax-free growth and tax-free distributions in the future.
Can day trading be done in a Roth IRA?
—Yes, day trading can be done in a Roth IRA, and all the profits generated from trading activities are tax-free.
How can structuring a small business help with tax savings?
—Setting up a small business allows traders to take advantage of various tax deductions and strategies that can significantly reduce taxable income.
00:02Learn the tax strategies used by the top 1% of traders to avoid paying income tax on their trading profits.
00:08Moving to Puerto Rico can help traders pay zero income tax on their trading profits.
01:54Utilizing tax-deferred retirement accounts such as IRAs can significantly reduce taxable income.
03:43Backdoor conversions allow traders to contribute to a traditional IRA and convert it to a tax-free Roth IRA.
08:16Day trading in a Roth IRA can eliminate income tax on trading profits.
10:39Structuring a small business can create additional tax-saving opportunities.
