How to deal with taxes?

Discussion in 'Trading' started by Ace_Rothstein, Jul 31, 2001.

  1. I am a relatively new daytrader (been doing it for ~6 months) and am wondering how other people deal with the money that must be set aside for taxes. I know that next year I will probably have to file quarterly (which will solve this problem), but right now I am looking at ~30K in taxes and was wondering what I should do with this money until then. I was thinking a cd/money market that matures next March would be a good idea so that I will be earning interest. Also I figured that putting the money into a mutual fund would not be good because then I would essentially be gambling with the government's money. Wondering if anyone has any suggestions or advice from an accounting standpoint... Thanks,

  2. mjt


    Don't you need to send estimated payments to the IRS every quarter?
  3. Ace,
    If you plan on day trading for a living, I would advise you contact an accountant that could set you up on estimated quarterly payments. For now the cd/money market idea is not bad.
    Happy trading,