high frequency stock trading tax optimization

Discussion in 'Taxes and Accounting' started by pupu, Dec 12, 2008.

  1. pupu

    pupu

    I'm a us citizen, living in the us and been doing a bit of equity trading close to a decade now.

    One reason I haven't stepped up is taxes.

    Doing this schedule D is a real pain especially with many trades. Also only being able to offset only 3k of losses against gains.

    Trying to find out possible solutions to allow me to make more trades while minimize taxes and only pay of net profits(offsetting losses in full)
    Trading in my Roth IRA is a great option but obviously somewhat limited.

    I am willing to considering some extreme solutions like relocating abroad or setting up a 'company'

    thanks in advance for any help
     
  2. jeb9999

    jeb9999

    There is no $3,000 limit on offsetting losses with gains. The $3,000 limit is on offsetting capital losses with ordinary income.

    Unless you are married to trading stocks, you should trade futures. 60/40 long/short tax treatment and a single gain/loss number per broker to be reported on tax Form 6781.

    If you insist on trading stocks then the tax choices are to hire an accountant or use accounting software to keep track of your trades for Schedule D.
     
  3. pupu

    pupu

    Thanks jeb9999

    I'll look into it although I think I'm probably too old and stupid for that.
     
  4. Send your taxes to me sir, I am a tax accountant. My family has been in the business since 1946! :D