Who uses a Schedule C for their Trading?

Quote from ess1096:

Since the Mark to Market subject has been brought up....
Could a trader with MTM status move a porttion of their profits (up to the legal limit for IRAs) from their taxable trading account into an IRA account each year to reduce their taxable income?

The short answer is 'No'. You will have to pay taxes on your profits regardless of whether you choose MtoM or not. However, you can still move a portion of your trading profits if you so chose to an IRA after having paid taxes for the year during which you earned the profits.
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The IRS has already cover the subject of trader, day trader, trader in securities and investor in specifics as to what and what not can be done.

I understand where midlifeguy is coming from as a cpa and the vastness of irs reg's. That is why there are cpa's that specicalize in the area of trading.

This covers it.

http://www.irs.gov/faqs/faq-kw44.html
 
Thanks.
I would rather come across as honest and doing the right thing than some cocky SOB that thinks they know it all. Like I said 50 places, 50 answers. Anyone that tells you they know it all is someone to avoid. I have been doing taxes a long time. All I tell my clients is that I do the best based on the info I have and the software I have.
thanks for your support!!!

TIM
 
i just used my schd d(d-1)

don't be afrraid of taxes - it's the cost of doing business, if trading is your business.

if you don't like taxes, become a better trader.


don't try funny stuff with taxes - it will only cause more headaches then it's worth. uncle sam is nice enough to provide a free-market, military, and decent social services for us and our neighbors. pay him his due.


-kk
 
Quote from midlifeguy:

I am a Registered Tax Preparer and think that if this is your full time occupation, then you can do it. The benefits are lots of writeoffs and you build a Social Security fund for yourself.

Also, since most of your trades are short term, you are taxed at the same rate anyways. I still think you can claim the longer term cap gains rate on your longer term holdings. I have a way to do it that makes sense
and if you are interested in having your taxes prepared
contact me...cunningtax@excite.com
TIM

Registered and Bonded.
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You must really suck if your trying to get business by posting on ET.
 
here's an unfortunate question, is it possible to pay more in taxes than actual net profit generated on equity trades? i added stocks to my trading this year, haven't elected MTM so far, and a few months into it am seeing that realized short term loss is consistently a pretty high % of realized short term gain, a relationship i need to improve at the strategy level

could the taxes actually exceed the profts in this scenario in spite of otherwise decent looking gains?

if i were to assume all realized short term losses were wash sales, at what % of realized short term gains do the taxes negate a profit?
 
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