Technical analysis by CoffeeshopCrypto about Symbol BTC on 6/12/2025

***Make sure to read this through. At the bottom is an email you can fire off to your CPA as well as your funded broker with the right questions to get you started***In the video above I gave you the thought process and questions that come to me from many people weekly. I want to share with you guys a method you can use which depends fully on weather its availble by your broker or not.The Issue: I am getting payouts from my broker but I dont want to pay taxes on it. What do i do?The Answer: There is no way to AVOID paying taxes but There are some questions you need to ask both your Broker where you have or will have your funded account, as well as ask your CPA if you are using one, which will or will not allow you to move your "GAINS" directly into an investment account without paying an INCOME tax.Bare in mind, the bottom line is that if its possible for you to do this, youll most likely need to set yourself up an an 'entity' like an LLC or an S-Corp.-----------------------------------------Can you trade through TradingView using a funded account?Yes. Most prop firms (like Apex, My Funded Futures, etc.) allow access to TradingView via third-party routing systems like Rithmic, CQG, or Tradovate.Can you send trading profits directly into an investment account (e.g., with Fidelity or First Fidelity Trust)?Not directly.Most prop firms pay out to you personally via: ACH / PayPal / WireThe payout is treated as income, not capital gains — you’re usually issued a 1099. So short-term capital gains don’t apply here — it’s contractor income.Can you route those funds into an investment or retirement account?Only indirectly, if you:Set up a legal entity (LLC/S-Corp)Prop firm allows payouts to that entityEntity sends funds to a brokerage or retirement accountThis gives you:Tax management optionsAbility to fund SEP IRAs, Solo 401ks, or other investment vehiclesBusiness deductions and better income structuringImportant: Not all prop firms support this. You must ask.What happens if you just take the payout personally?You’ll owe taxes on the income that year. If it's a large amount and you're not using any tax strategy, this can be a big hit — and you won’t be putting that money to work in a retirement account, which could have deferred or reduced the tax burden.Why do traders want to route funds into investment accounts?To defer taxesTo compound gains in tax-advantaged environmentsTo avoid having income hit their personal checking and be immediately taxed without structureTo separate business income from personal finances.Who should you talk to?A CPA who understands prop firm payouts + entity structuringThe prop firm support teamYour investment account provider (e.g., Fidelity, First Fidelity Trust)If You’re Using Your Own Capital (Not Prop Firm Capital)When you're trading from a cash account funded with your own post-tax money (like a personal account at Tradestation, Fidelity, Interactive Brokers, etc.), you're in a completely different tax situation compared to a funded prop account.Im trading with a CASH ACCOUNT and this money was already taxed. Why am i paying more tax?1. You’re Right: That Money Was Already TaxedIf you earned money through a job, business, crypto sale, whatever — and then you funded your trading account with it — yes, that money has already been taxed as income, capital gains, or whatever the original source required.But…2. Trading Gains Are Still Taxable — SeparatelyOnce that taxed money is used to generate more money via trading, those gains are now a new taxable event. Here's why:The IRS doesn’t look at “double taxation” in terms of the original dollar — it taxes the gain on that dollar.For example:You fund your account with $10,000 (already taxed)You trade it up to $15,000You now owe taxes on the $5,000 gain, not the $10,000 you started withSo no, you're not being taxed twice on the same dollar — you're being taxed on new earnings generated from that dollar.3. Type of Tax Depends on Holding PeriodDay Trading / Short-Term (< 1 year):Taxed as ordinary income, same as your paycheck (could be 10–37%)Long-Term Gains (1+ year):Taxed at long-term capital gains rates (typically 0%, 15%, or 20%)This only applies if you’re not trading inside a retirement account (IRA, 401k, etc.).So What’s the Advantage in Routing Gains Into an Investment Account?This is where people try to get clever.They want to avoid realizing gains in their personal account because:It may bump them into a higher tax bracketIt may trigger estimated tax paymentsIt might disqualify them from certain tax creditsSo the idea is:“Can I send the profits somewhere else (like an IRA, trust, or investment vehicle) so I don’t get taxed now?”Answer: Only if the gains were made inside that tax-advantaged account to begin with.You can't trade in a regular brokerage account and then “move” those gains into an IRA to defer tax. That’s not how tax shelters work — they only protect gains earned inside them.Does Being Self-Funded Change the Tax Situation?Scenario = You fund trading with post-tax dollars ---- Not taxed again on that baseScenario = You generate gains from trading ---- Yes, new taxes on new profitsScenario = You want to avoid immediate taxation ---- Can't defer taxes just by moving profitsScenario = You trade inside an IRA/401k ---- Gains tax-deferred or tax-freeScenario = You trade through a prop firm ---- Income tax, no capital gains involved----------Here is an email to get you started. Send this to your CPA and your Funded account broker---------- Questions to Ask Your Prop Firm (If Using Funded Accounts)Do you allow payouts to a legal entity (LLC or S-Corp)?Can payouts be directed to an investment firm or custodian?Can the account be held in my entity’s name?Do you issue 1099s for entity payouts, or only for individuals?Are there limits or fees for routing payouts to a business or trust account?