I have been trading in the financial markets for several years now. To expand the business, I have now set up a trading firm as an LLP.
So now I have to brokerage account with the same broker - one as an individual account and the other as the LLP account. For trading purposes, I need to pledge my mutual funds and other financial assets in order to get loan (or margin) from the broker for trading. At present, I am trading from my individual account and the financial assets are pledged to my account.
This needs to be moved to the LLP account so that now the trades can be done on behalf of the LLP. The rudimentary way that I of his to sell all my holdings and then purchase them again through the LLP account. However, this would trigger signficant short-term and long-term capital gains tax.
Is it possible to this transfer without triggering any tax events. If need be, I'm also willing to dissolve the LLP and set up another legal entity, even as a sole proprietor make the transfer of financial assets easier and without taxes as far as possible.
Neither of my ca not my broker able to advise on this so any pointers would also be useful. Thank you
CAclubindia
