Declaing yourself as a DAYTRADER taxes!

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?

 

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

 

CHECK THESE LINKS OUT FOR THE ANSWER AND THEN FIND AN ACCOUNTANT


http://www.irs.gov/irb/2007-26_IRB/ar14.html

http://www.fairmark.com/traders/mtmacc.htm

http://www.armencomp.com/mark-to-market.html

http://books.google.com/books?id=DM...&hl=en&sa=X&oi=book_result&resnum=3&ct=result

 

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

 

You may find your answer in this CBOT seminar by Robert Green:
http://mediasrv1.cbot.com/02062007_green

 

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?

 

daytraders don't pay self employment tax

 

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

 

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

 

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