Okay, I got back into trading this year and basically getting smoked. This past year has basically been a nightmare financially for me. The first 6 years of the decade were good...slow and steady wins the race and not fast and furious and greedy.
I'm pretending my backs to the wall and I had to liquidate all my accounts. Hypothetically, I say screw it and cash in my accounts. (I'd like to put a 20% down payment on a condo in the near future anyway). Trading account and 401k from old job is where 80% of my money is. ROTH IRA left alone since that won't be touched until 59 1/2.
My 401k from my old job just sits as the plan was to roll it over into a new jobs plan whenever I start working again. There is only 36k and change in there. I eat the 20% penalty withdrawing under the age of 59 1/2. (ouch!). So thats $7,200 knocked off and a transfer of 29k.
But since this has been the year from hell, I have 20k in realized losses trading and another 18k losses if I liquidated and sold rest of positions tomorrow.
So how do you treat this come tax season for year 2007? How do I use these losses to my advantage? I have no W-2 or shit this year since I have no job. What gets put down as title (loser trader)? What sucks also is I found out I can't put 4k as a contribution into my Roth this year like I've done every year for 5 years since I have no earned income (correct?). Man, I need to get a freegin' job again.
Also do I lose out on the losses from 2007 next year if by chance my positions I leave alone turn around so I don't pay capital gains taxes on the 2008 year? How much time do you have to use them as a write off in the future?
Man, I need to get to sleep. Thanks for feedback. I will sit down with my accountant at some point. He will say "I told you so for trying to be a day trader"...f me.
Eligibility requirements
You must have earned income (compensation) in order to contribute to a Roth IRA. The annual amount you can contribute to a Roth IRA is solely dependent on your adjusted gross income as determined on your federal income tax return. The following table should help you determine whether or not you are eligible to contribute to a Roth IRA:
I'm pretending my backs to the wall and I had to liquidate all my accounts. Hypothetically, I say screw it and cash in my accounts. (I'd like to put a 20% down payment on a condo in the near future anyway). Trading account and 401k from old job is where 80% of my money is. ROTH IRA left alone since that won't be touched until 59 1/2.
My 401k from my old job just sits as the plan was to roll it over into a new jobs plan whenever I start working again. There is only 36k and change in there. I eat the 20% penalty withdrawing under the age of 59 1/2. (ouch!). So thats $7,200 knocked off and a transfer of 29k.
But since this has been the year from hell, I have 20k in realized losses trading and another 18k losses if I liquidated and sold rest of positions tomorrow.
So how do you treat this come tax season for year 2007? How do I use these losses to my advantage? I have no W-2 or shit this year since I have no job. What gets put down as title (loser trader)? What sucks also is I found out I can't put 4k as a contribution into my Roth this year like I've done every year for 5 years since I have no earned income (correct?). Man, I need to get a freegin' job again.
Also do I lose out on the losses from 2007 next year if by chance my positions I leave alone turn around so I don't pay capital gains taxes on the 2008 year? How much time do you have to use them as a write off in the future?
Man, I need to get to sleep. Thanks for feedback. I will sit down with my accountant at some point. He will say "I told you so for trying to be a day trader"...f me.
Eligibility requirements
You must have earned income (compensation) in order to contribute to a Roth IRA. The annual amount you can contribute to a Roth IRA is solely dependent on your adjusted gross income as determined on your federal income tax return. The following table should help you determine whether or not you are eligible to contribute to a Roth IRA:
