Tax issue

what if he had lost $60k at lightspeed? does it mean he can deduct 3k every year for the next 20 years? or is there a limit?


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Well, if you never trade again, it would take 20 (19) years. But if you make $60K in investment income the next year, you can offset the income with your loss carryforward (if short term / long term matches up)
 
what if he had lost $60k at lightspeed? does it mean he can deduct 3k every year for the next 20 years? or is there a limit?


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Well, if you never trade again, it would take 20 (19) years. But if you make $60K in investment income the next year, you can offset the income with your loss carryforward (if short term / long term matches up)
 
Can smone clarify on taxes.
If a trader living in San-Fransisco trades tru prop in NY.
Initial deposit 5k, net profit after 4 month 20k.
After that closes account wiring 25k(5k initial+20 profit)
How much tax due to be payed.
Would appreciate explaining in $ and percent.
 
Quote from halligan:

Can smone clarify on taxes.
If a trader living in San-Fransisco trades tru prop in NY.
Initial deposit 5k, net profit after 4 month 20k.
After that closes account wiring 25k(5k initial+20 profit)
How much tax due to be payed.
Would appreciate explaining in $ and percent.
More...
you owe tax on the 20k at whatever your individual tax rate is both federal and state.
 
basic question here,

retail account (e.g IB) trades futures/options

if loss, max 3k deduction/yr?
if gain, eligible for 60/40 treatment?

thanks
 
Futures are 60/40. Options are not and depend on holding period so probably short-term.

So once you've gotten the short-term and long-term profit/loss broken down you apply any short-term loss to short-term gains. If you still have a short-term loss you apply it to net long term gains (L/T gains after L/T losses are applied). Any losses left over up to $3K you can apply to regular income. If you still have losses left after using the $3K you carry the loss forward to 2010 taxes.

If you have $6K left over from 2009 you can apply the entire $6K loss to long or short term gains from 2010. If you have no capital gains this year (2010) you can apply $3K to your regular income and carry the remaining $3K to 2011.

Jack
 
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