What is the effective capital gains rate?

what is the effective capital gains tax rate, 15%?
can i daytrade and be effectively taxed at that rate, 15%?
or?

Paula

 

Depends on if it's long or short term cap gains. Day trading is short term which is taxed just like regular income.

 

An asset has to be held for at least a year to qualify for capital gains treatment.

 

No, day trade income is taxed at ordinary income rates (reported as short term gains / losses on 8949). If you have mark-to-market election with the IRS (form 475f), I think it's taxed as 60% long-term, and 40% short term, but there's some very specific guidelines you must comply with to make that election.

 

Rule 1256 allows for day trades to be taxed 60-40 long/short on futures trades only.

 

I stand corrected...
Is there any reduced rate for trader status or is it all effectively short-term rates?

 

Trader status allows you to Mark to Market and gets taxed as regular income. Take a look at GreenCPA site for good info

 

So primary benefit of MtM is no wash sales and no loss limitation?

 

You get to carry forward loss up to $3000 per year, if you end up with a net loss.

 

Just asking.
Are we taxed from the withdrawal or from the profit from the brokerage account?