Hi, I'm planning to start daytrading soon. But I heard the daytrader's tax is quite complicated. I wonder what the best I can do now to make the tax job next year easier. The service on tax preparation provided by different brokers matters and may affect my choices for opening brokerage accounts, right now I'm think about wellst rade from wells fargo. Any suggestions? Also I live in northern California, any special state tax law applied for daytraders here? Is that true you have to pay the tax quarterly? Any inputs are appreciated. I just want to well-prepared for everything before I start. Thanks.
if you are just starting trading you probably will not have a tax problem next year. your first year its best to keep your trading business as a sole prop so you can deduct losses against other income.