Recent content by daltee36

Great, I see what you mean. So in order to track the current tax bracket, I will need to record every trade in a tax software and look at the 'Net Value'. Then I can maintain the relationship between my tax fund and profit withdrawal would this be a good solution ?

Traders outthere, let me know how do you withdraw profits and organise your tax amount. I don't wanna mess up with Uncle Sam :D

So do I just pick a percentage with instinct, and evrytime I need to withdraw money, I set aside this percentage of profit in my 2nd account for tax. I am not sure if this is what most traders do ? But more or less, there will be discrepancy.

That's my initial thought as well. But how do I know the right percentage of profits to set aside ? Say If someone is very profitable, he end up sitting in a high tax bracket at the end of the year (45%). But throughout the year, he wouldn't be able to predict him to be doing very well for the...

The story is a bit long, how come you lose money and still need to pay tax to IRS ? Did you trade in loans ?

Let me know if I am trapped in a stupid mindset, or this actually matters for traders .. ;)

Yeah, I see what you mean. Following on your example, Let's say I started the year with 50K, but during the year I keep withdrawing the profits and spend them all. I always maintain the account at 50K level, so I ended the year with 50K in my broker (But the statement will tells me that I have a...

I see

Yeah, will check this out thank you, I think the other day I watch his presentation video for tax filing. By the way, I think this is like one of those things that every trader will have to deal with unless he/she lives in a place with 0% income tax. How do you deal with this ?

Just a normal account. Yeah you are right, whenever a trade makes profit, the tax is triggered no matter I withdraw money or leave them in the broker. What I would like to find out is that in case I need to spend the profits, how do I measure the amount I can spend. Tax rate range is normally...

I'm trading stock. I have done some research and watched videos about tax preparation software. They have very details explainations about how to import trading data and export the finalised tax documents at the end of the year. But it is not realistic to assume people only take profit once a...

I am aware that trading profits are taxed at a certain rate depending on the amount I make. Since tax is only reported once a year, but I can withdraw profits from my broker to my bank account more often that (Monthly, Weekly, even daily). How do I know the amount of money I am legitimate to...