Tax question - daytrader

Discussion in 'Taxes and Accounting' started by izzy, Sep 19, 2007.

  1. izzy


    I been trading for 6 months already and just realized that I've traded the same stock within a 30 day period. I understand that if you had a loss on a position, you may not trade that same position for 30 days if you want to offset the loss. Does that still apply for daytrading? Thz
  2. Of course. Wash sale rule.

  3. cmlg


    If you are a qualified trader, you can use mark-to-market accounting and then you won’t have to worry about the wash sales. If you sell a stock for a loss and buy it back within thirty days, you can’t claim the loss but you can add the loss to the basis of your new stock.
  4. It only makes a difference to your tax situation if the 30 day period crosses the end of your tax year. All other periods will not affect your tax liability, merely an accounting headache.
  5. izzy


    In other words, that situation only applies when trading in December?

  6. Maybe I'm mistaken but if you file m2m before the beginning of the new tax year, then the wash sale rule doesn't apply at i right ?
  7. Big AAPL

    Big AAPL

    This is correct.