I think my trading is being affected by thinking of taxes The outcome of any gain is taxes So in my subconsciousness mind I don't want a gain so there is no worry of taxes... So how do you deal with the tax man be-hide every trade? You pay every Qtr - every 3 months or you pay at the end of the yr all your gains Maybe somebody can help me.. ty..
worry about your PnL,not taxes. be happy that you have to pay taxes. mean-you are profitable. i pay estimated. every quarter.there is nothing special or difficult about it. you can pay at end of the year,but you will pay penalty. see IRS site about it. as one wise man said in other thread-if you can't do your taxes-you shouldn't trade. educate yourself.
Thanks but forgot to add State taxes to the mix let's not forget state taxes you handle state taxes the same as federal?
yes. i pay and mail state at same time. it's ain't big deal either .cause we are talking about 3%(PA)..find out your state rate(if there is any) and just pay whatever..you made 100$-> your state rate is 3%-then you own $3(not worth sending a check,stick with end of year + penalty). tough shit..isn't?
One way to skip the tax man on trading, is to trade inside a Roth IRA or Roth Individual 401(k) account. Then it's permanently tax free. Or, trade in a traditional retirement plan and don't worry much about trade accounting each year. Just pay taxes on retirement plan distributions when you take them in retirement. Securities accounting is a pain for taxable accounts, but Section 1256 contracts are a snap. Section 1256 contracts and forex have summary reporting, whereas securities need line-by-line trade-by-trade accounting on Form 8949 (cash method) or Form 4797 (Section 475 MTM method).
easy to say Mr. Green,but not easy to do. typically you can't short on any retirement plan and for trader like myself-it will take pretty long time to raise reasonable sum for trading(50-100K that i need for my trading style)
you can't short... but you can trade instruments that reflect your view on the markets... there are inverse ETF's and futures as well... but I agree with you... hard to find a long position when the market is bear... and Roth is restrictive in terms of how to fund it... regular IRA's are much easier in that regards... you can fund a soloK with ~$50K and then rollover to the IRA... no such thing with Roth unless I pay taxes on that conversion...
Income taxes are a success problem. Step 1: Be successful. Step 2: Hire a qualified tax professional to help you minimize your income taxes. Step 3: Enjoy your success. Problem solved.
here we go again. the problem is-i couldn't find any . based on past expirience(and i have plenty of it)..maybe..maybe there is some 'real pros' somewhere ... those,who helped Goog and such..but they probably going to charge me more than i make..and again-there is absolutely no guarantee that #1-it would worth it, #2-they will do it right.
My taxes take me about two to three weeks to prepare and I have spent numerous hours building programs to make the process easier. No way am I handing off the nitty gritty work to a CPA. They'll charge me a fortune, plus I won't even trust that they are correct. If I ever have questions that I cannot find the answers to, I'll ask questions to GreenTraderTax. Otherwise, I prefer doing everything myself.