Robinhood daytrader owes 800K to IRS on a profit of 45K

[newwurldmn]

Yes, you can select which positions you want MTM treatment, and which you don't. It's actually a very flexible approach.

Does that go against the litmus test of 31 day holding periods?

 

[guowei58]

Does that go against the litmus test of 31 day holding periods?

i don't understand your question. what do you mean by the litmus test?

 

[newwurldmn]

i don't understand your question. what do you mean by the litmus test?

There are certain criteria to qualify for section 475. One of them is that your average holding period has to be less than 31 days. I think this is defined by some court case.

I can't find the link now, but GreenTraderTax explicitly highlights this as being one of the most important criteria's.