is wash sale a concern for active trader?

[trend2009]

i am active day trader, some positions hold overnight, some closes on the same day. every day I trades large volume, say 10 million USD bought and sold, and make a razor thin profit. if according to wash sale, i can not claim the loss, i would own IRS million dollars every day.

 

[BKR88]

Need to stop trading a stock for 30 days to end the cycle of carry-forward losses.
During full month of December don't trade any stocks you traded during November. That will ensure cycle starts over for next year and all losses will be recorded for current year.

 

[ajacobson]

There is an active thread on the sight about this.

 

[lindq]

Need to stop trading a stock for 30 days to end the cycle of carry-forward losses.
During full month of December don't trade any stocks you traded during November. That will ensure cycle starts over for next year and all losses will be recorded for current year.

Or, simply do not buy in January what you sold in December, 30 days prior. Otherwise, keep calm and carry on.

 

[levanyashin]

How does this work for US Based financial institutions ? Also on US based proprietary trading firms and US resident traders

 

[Bugsy]

i am active day trader, some positions hold overnight, some closes on the same day. every day I trades large volume, say 10 million USD bought and sold, and make a razor thin profit. if according to wash sale, i can not claim the loss, i would own IRS million dollars every day.

Wash sales don't forfeit your losses, they just divert them to a later date. Even if you gain a wash sale in the month of December it will still be able to be carried forward, it's just you will not be able to do so until the following tax year a year later, unlike any wash sale gained prior to December.

I actually believed you lost all wash sales. If you look through the link below, where another user thoroughly explains it to me, you will have a good understanding of how it affects you.

https://www.elitetrader.com/et/threads/avoiding-wash-sales.347846/

 

[athlonmank8]

From what im reading my assumption would be if there's any doubt you should claim active trader status. If wash sales become an issue you'll have that from a legal standpoint.

 

[murray t turtle]

i am active day trader, some positions hold overnight, some closes on the same day. every day I trades large volume, say 10 million USD bought and sold, and make a razor thin profit. if according to wash sale, i can not claim the loss, i would own IRS million dollars every day.

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Or use a Roth/backdoor roth + owe nothing but sec fee.......................................................