you pay tax on 60k. the record keeping paperwork concerning wash sales will apply to you but since you made a profit you should not have a wash sale violation.
Thanks Free Thinker. Some months I trade so frequently. But at the end of the month I ended up making only less than 1 point. Think about it how frustrated it is. Sometimes I win 12 points and lose 11 points for that month, ended up making profit only 1 point. If I would have to pay tax based on my wins of 12 points, then it would be horrible. My tax guy didn't really know anything about it. Anyway...Thks all for your advice.
man....if you still confused...can't you just use goggle search for sake.. here- http://www.tradelogsoftware.com/ two words- free trial
I think it depends on the chronological order of his trades. There could be losses at the end of the year that don't get wiped out by profitable trades. In the end, the only way you can tell is by using a wash sale calculator (like Tradelog or there is a free one at Offwall.com).
You will only be taxed at 2520, if those are the only transactions for the year. Wash sale rule has no effect since you have a net profit. And you will not be taxed at 35% but rather based on your tax bracket. Short-term capital gains are taxed as ordinary income.
Thanks TakeAChance, My question is very straight forward with an example. All I need is a straight forward answer, either yes or no with a explanation. Which that is what you gave me. I've seen in another forum about this topic and there wasn't any clear answer at all. Just running around the bush with some links but with no clear answer. Thanks again
The best thing to do if one is worried about this idiotic wash sale rule is simply to not make a single trade in the month of December. Someone please advise if I am correct.