My brother is an F1 student and I'm a US green card holder. He wants to engage in intraday trading in the US stock market using my personal information (SSN, name, bank account). I would transfer the profits to him. Are there any legal, tax, or regulatory implications to this arrangement
Asked
Active
Viewed 262 times
1 Answers
8
Are there any legal, tax, or regulatory implications to this arrangement
Yes. Lots of of them.
These are two completely different events here. If you trade with your SSN and your account, you are fully responsible for all profits, losses, and taxes associated with it regardless if trade on behalf of your brother or not. You are buying and selling, not him.
You can have a separate agreement with your brother on how to direct with investments to buy and what to do with the profit and losses (after taxes & fees).
Overall this is a terrible idea. You are fully responsible for all taxes and losses associated wit the trading and you may also owe gift tax when you send money abroad. Its possible that your brother will make decision that will costs you 1000s of dollars which won't help the family peace.
Hilmar
- 9,719
- 1
- 29
- 30