When do day traders pay the tax and how to do it ?

[monet]

Lucky you. Makes all us Yanks wish we lived in the UK.

Who wouldn't want to live in a Boris Johnson dictatorship?

 

[monet]

Sorry guys, I can't resist - as a UK trader using spreadbetting to trade markets I never have and never will have to pay taxes on my gains. No matter how large. Don't even have to submit a tax return.

The tax contributions of the spreadbetting companies and their employees more than makes up for the handful of profitable spreadbetters paying no tax such as yourself.

Everyone wins!

 

[tomorton]

The tax contributions of the spreadbetting companies and their employees more than makes up for the handful of profitable spreadbetters paying no tax such as yourself.

Everyone wins!

All correct.

No worries with pattern day trading, no shorting restrictions, no scalping restrictions, no complications with lots and contracts and micro-lots. No negative equity risk. Client funds in segregated accounts. Deposit protection up to £85k. No income tax, no capital gains tax. No tax paperwork. Limited leverage. Guaranteed stops.

Its not a bad life......

 

[Buy1Sell2]

Losses are normally filed on schedule D and 3000 can be taken each year.

 

[browntrading]

Regarding gains/losses in the LLC... those won't be reported until after year end. The LLC manager will not be paying quarterly estimates on behalf of the LLC. Each individual investor will pay his own after year end. No quarterly estimates unless there were taxable distributions during the year (which would be unusual).

I am US based, new to fulltime equity trading, have recently formed llc (scorp election), i have booked some wining trades but have some losing trades (which I am holding to sell at approprate time), wanted to confirm from trader bro's, do not have to file Quarterly tax with IRS or is my understanding wrong.
Also, have not taken any salary since inception (last 2 months), is that a problem or can just have payroll done at the end of year.
Any inputs will be highly appreciated. Regards.

 

[Scataphagos]

I am US based, new to fulltime equity trading, have recently formed llc (scorp election), i have booked some wining trades but have some losing trades (which I am holding to sell at approprate time), wanted to confirm from trader bro's, do not have to file Quarterly tax with IRS or is my understanding wrong.
Also, have not taken any salary since inception (last 2 months), is that a problem or can just have payroll done at the end of year.
Any inputs will be highly appreciated. Regards.

When the LLC pays you salary or pays you other taxable distributions... that's when you need be concerned about quarterly estimates.

Ideally you would not take salary or any other distribution until year-end... then make your annual tax estimate by the 4th quarter tax date.

 

[CannonTrading_Ilan]

Hi guys,

If one makes a profit in day trading - when to pay the tax - is it when filing taxes or at other schedule such as every month or week or something like that ?

Also, do you go to an accountant do it or on your own you do ?

At the end of each year you should receive a 1099B form from the clearing firm where your account is located with your profit/loss for that year. You would usually incorporate that 1099B tax form with your other taxes for that given year. I'm not a tax adviser so you may want to get an accountant to make sure you are filing everything correctly.