Day trading and taxes?

[flyinglead]

Quote from Bob111:

for me-to open new thread on public forum is last resort. first thing i would do-use google. if there is not enough info-search on forums and public boards. and if this is not enough-then post.
that's why people, who post those obvious questions got abused-cause they too lazy, to spend some time on research.
agree with lightfootg-

Well, it does start a good discussion.
Lesson to learn-- If you want the facts, go look them up, If you want to read a lot of different opinions, start a new thread.
Personally I like to read the threads that start a discussion, then I can go look them up knowing the different ways people will interpret them.

 

[kmkkra]

Quote from flyinglead:

Well, it does start a good discussion.
Lesson to learn-- If you want the facts, go look them up, If you want to read a lot of different opinions, start a new thread.
Personally I like to read the threads that start a discussion, then I can go look them up knowing the different ways people will interpret them.

Yes, yes... This is one of the reasons why I first posted. I wanted to get an indepth discussion going about the subject, and then I would research the different points that would be made. Of course I know that you guys are busy, and there are other people who need answers too. If I were not sick, as I posted earlier, I would enthusiastically research the info without any help. I mean there are an endless amount of great resources out there. My illness really complicates things for me, and holds me back in this life.

However, thank all of you for your input... I LOVE IT. Please keep your input comin', and feel free to be as descriptive and detailed as possible. That is, unless this thread has run its course.
LOVE the answers... Thank you all!

 

[bunngp]

someone tell me why you would make a bussiness decision based on taxes. i will take advantage of all tax laws. i have never said i would not make money because taxes. i am self employed & trade. who cares if you pay 35% 0r 28% if you making money.

 

[kmkkra]

Quote from bunngp:

someone tell me why you would make a bussiness decision based on taxes. i will take advantage of all tax laws. i have never said i would not make money because taxes. i am self employed & trade. who cares if you pay 35% 0r 28% if you making money.

Ultimately taxes will not sway me. However, I always aim for the most easiest, efficient, and productive manner in which to accomplish anything. It was my intention and hope to achieve this efficiency through my trading strategy(both now, and in the future, after I thoroughly learn about chart, and trading patterns, and behavior)however, with such an exaggerated tax rate I don't no how I can achieve this. I am still pleased with the possibility(or certainty, if you will...)of making such a large amount of money.

I would also be negligent towards myself if I did not take such a rate into consideration before making such a business decision. It seems logical to consider all facts and possibilities before proceeding into any endeavor.


Thank you for any input!

 

[supersizeit]

There is no doubt that knowledgable people exist on ET but I personally would not rely too heavily on the accuracy of their answers... especially on a subject like taxes (tax laws are always changing)

My suggestion is to consult with an "expert on trader taxes" after you have proven or convinced yourself that you can consistently make money trading otherwise whats the point.

At least buy a book such as the one in the link I provided.
I bought this book and thought it was an excellent source for trader taxes. I found almost all the answers to my trader tax questions. I will most likely hire this guy for my taxes. There is a lot of information on that website as well.

http://www.greencompany.com/Traders/Guides.shtml

 

[JackR]

Quote from hughb:

Are you guys sure that a person with trader status from the IRS pays no social security taxes? I didn't find that on the IRS website the last time I looked. Any links to their site would be appreciated.

Self-employment tax (Social Security and Medicare) is never paid on capital gains, just on "earned income". It does not matter whether you have filed as a "Trader In Securities" or a "Trader in Commodities", so long as you file as an individual (1040).

Jack