Declaing yourself as a DAYTRADER taxes!

Discussion in 'Taxes and Accounting' started by Sky123987, Oct 14, 2008.

  1. this is what my accountant is telling me...

    I have a whole TON of taxes that I owe becaues of this WASH rule. I understand that you can elect to be a day trader, where you'd have to pay self employment tax, but you avoid this wash rule which would bring my tax libality down A LOT.

    however they are saying that this declaration as a daytrader MUST be done by april 15th of the current tax year in order to have this option.

    Is this true?
  2. rweiss21


    This is correct the deadline to declare was 4/15.
  3. bducks


  4. JORGE


    Electing to use MTM (daytrader), does not mean you will pay SE taxes.
  5. vita


  6. did your firm prepare your taxes using a specific tax software package? can they e-file them for you? did they send you a paper copy and now expect you to mail it in? or will you e-file?
  7. daytraders don't pay self employment tax
  8. Darshan


    Damn I've never done this... so I can't fill as a daytrader is there any exception to this rule?

  9. They do, if they want to collect SS and have all the expenses deducted .
  10. JORGE


    As a retail daytrader you can claim MTM, avoid SE taxes, and still deduct all of your trading expenses.
    #10     Oct 14, 2008