I don't qualify for Trader Tax Status yet, but irregardless, under regular federal capital gains tax, what would I be paying with a net profit of $600,000(Hypothetical Number) for the trading year? No deductions, no other income, just in raw federal tax. (Would I be charged as ordinary income or on the high 39% capital gains tax) Thanks
You failed to mention what you are trading. irregardless is not a word. If you are trading short term stocks you would pay short term gains which is your regular income tax rate. If you are trading futures you would be paying 60% long term capital gains rate and 40% short term.
"Irregardless" is not the opposite of "regardless", but rather a non-standard form of "regardless". I would put it in the same category as the double negative, such as "I don't know nothing about it." My favorite is "Nobody does not tell me nothing about nobody no more." $600K would put you in the top tax bracket. - if it is ordinary income, it would be taxed at 39.6% - if it is short-term capital gains, it would be taxed at 39.6% - if it is long-term capital gains, it would be taxed at 20% As wartrace mentions, some instruments (such as futures contracts) have preferential tax treatment. With futures, 40% of your gains would be taxed at 39.6%, and 60% of your gains would be taxed at 20%. I think the size of your profits justifies the use of a tax accountant, rather than the use of free advice from the internet forum.
My mistake, meant to put regardless. Anyway, it would be in futures and forex. edit: just read the last reply. Thanks.
Perhaps not. English is a truly wondrous language. Flammable and inflammable mean the same thing. My favorite new English word is "applepick".
That is not an English word. I assume this refers to the act of stealing iPhones, or to the person who steals iPhones? I like to make up my own words. For example, "garazmulka". However, until it gets included in the Merriam-Webster dictionary, or at least in the Urban Dictionary, it is as illegitimate as the word "applepick".