The IRS has already cover the subject of trader, day trader, trader in securities and investor in specifics as to what and what not can be done. I understand where midlifeguy is coming from as a cpa and the vastness of irs reg's. That is why there are cpa's that specicalize in the area of trading. This covers it. http://www.irs.gov/faqs/faq-kw44.html
Thanks. I would rather come across as honest and doing the right thing than some cocky SOB that thinks they know it all. Like I said 50 places, 50 answers. Anyone that tells you they know it all is someone to avoid. I have been doing taxes a long time. All I tell my clients is that I do the best based on the info I have and the software I have. thanks for your support!!! TIM
i just used my schd d(d-1) don't be afrraid of taxes - it's the cost of doing business, if trading is your business. if you don't like taxes, become a better trader. don't try funny stuff with taxes - it will only cause more headaches then it's worth. uncle sam is nice enough to provide a free-market, military, and decent social services for us and our neighbors. pay him his due. -kk
What makes someone be so unfriendly? Honestly. I feel sorry for you. Hope you find a way to be happier.
here's an unfortunate question, is it possible to pay more in taxes than actual net profit generated on equity trades? i added stocks to my trading this year, haven't elected MTM so far, and a few months into it am seeing that realized short term loss is consistently a pretty high % of realized short term gain, a relationship i need to improve at the strategy level could the taxes actually exceed the profts in this scenario in spite of otherwise decent looking gains? if i were to assume all realized short term losses were wash sales, at what % of realized short term gains do the taxes negate a profit?