Don't Make These Mistakes! Taxes for Day Traders

[@BogumilTanski]

Well, I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered and I don't know where to go here out of devastation.

[@WaldronsSousas]

If the market has taught me anything, it's that it always recovers, but I can't seem to focus on the long run when major factors like my retirement and my reserve are wreaking havoc on inflation. I require a solid data trajectory and solution as soon as possible.

[@JeffreysSuttons]

@@WaldronsSousas The issue is people have the "I want to do it myself mentality" but are not equipped enough for a crash and, hence get burnt. Ideally, advisors are reps for investing jobs, and at the first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.

[@BogumilTanski]

@@JeffreysSuttons I’ve been down a ton, I’m only holding on so I can recoup, I need help, who is this investment adviser that guides you?

[@JeffreysSuttons]

@@BogumilTanski The beauty of MARGARET MOLLI ALVEY approach is her dual focus: while aggressively pursuing profit opportunities, she's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.

[@BogumilTanski]

@@JeffreysSuttons Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible.

[@aschkansabaghi4901]

Ross is the financial literacy teacher we all needed in back in school 🏫 growing up!

[@wjcarman]

After talking with a CPA one thing that might be helpful to others is the concept that your money made day trading in a non retirement account is simply capital income and losses OR ordinary income and losses. If you elect to go trader status and mark to market it all becomes ordinary income and losses and can be deducted if net negative on trading year or added to other ordinary income if you work another job with a W2 or own another business and if net positive trading on the year. If you leave it as capital income and losses then only $3000 in losses per tax year can be deducted against ordinary income (any remainder amount does carry forward to next tax year). In my case as for some others probably I don't have any other capital income outside of trading so if I take a $10k trading loss for a year only $3k of it can be deducted against my normal employment income per year. Compare that to if I took a $10k loss in trading as a mark to market elected trader and I had another salary from normal work of $75k then I can write off the entire $10k trading loss against my normal job income. Hopefully that helps someone else. Thanks for making the video Ross

[@DaytradeWarrior]

Always good to reach out to a CPA for information on your specific situation and what may work best for you. Thanks for sharing.

[@vickipedia3253]

I am not working any other job, do not have any other income. Only had short-term gains from stocks. Do NOT have Mark-to-market status. Can I not deduct my whole 10K short term losses from next years short-term gains of 20k? I think I can. Because that’s what Schwab’s website says giving an example.

[@jimvalentine2814]

Yep, I heard the same thing, plus, you stated it very well.

[@Futbolnews12]

My most sincere gratitude for sharing your hard earned knowledge in this video Ross! Ross, in plain and simple language, what is the relation among: Proceeds, Cost basis and wash sales? I know there is a little math involved in this. If anybody else knows the answer to this, please feel free to to reveal it and I will seek professional help regardless before making any big decision. Thanks to any applicable party in advanced!

[@larkkenmars3306]

Literally doing my taxes today so I needed this information. Thank you 🙏

[@DaytradeWarrior]

You're welcome!

[@TurkNukemHD]

Guys , Ross missed something important and that is $3000 limit. You cant deduct capital losses over $3000 per calebder year....So MTM not only clears wash sales but also removes $3000 limit on yr losses...

[@divopts2012]

Sure about that - I thought you Couldn't GO OVER more than $3000 losses and the remainder had to be added to the carry over?? AE: so if you had $50k in previous losses. and you loss $25K the next year. you CAN deduct the whole $25K + 3k More, then Carry over balance is now $22K

[@brandycavazos6078]

He literally said that...

[@86fourtrax1]

For those that want to file as Mark to Market for 2022 taxes you need to mail in the irs request forms by April 15th.

[@DaytradeWarrior]

👍🤓

[@brandycavazos6078]

Do you know how to find those forms?

[@Wreakmayhem]

Call any CPA and they'll be happy to tell you. Download and print, or some will give you the form for the asking

[@adityasaini-zo7zg]

After 2 years today is 15 aprl

[@rustedironhorse6542]

Great video Ross! I was starting to look into this as I move to full time trading and this has helped immensely! Thanks again for what you do for the trading community!!

[@enoughofthis]

Should o open an LLC?, how to?

[@DaytradeWarrior]

You're welcome!

[@jameskeeler6321]

Thanks you for your help.

[@QuinnAnEveryman]

Thanks!

[@susiesunshine6803]

Never heard of the Mark to market .....THANK YOU!! Don't know what we don't know.

[@DaytradeWarrior]

You're welcome Susie!

[@EloffMusketeer]

@ 5:15 the taxable is $110,000? (100k + 10k wash sale disallowed)? I thought the wash sale off-sets? I thought that wash sale would be absorbed so the new cost basis would be a taxable gain of $90,000. Please correct me if I'm wrong

[@wread1982]

The wash rule your were trying to explain is you can’t sell then rebuy a similar stock in the same sector like, Exxon then Chevron, or sell Home Depot then buy lows with in so Many days or or say two similar tech companies that both do cloud or manufacture software

[@DaytradeWarrior]

👍🤓

[@memoryrinehart]

Your broker is only going to apply wash rule to same CUSIP stock/etf, not similar ones.

[@obijuan3004]

Good video Ross. Everyone needs to find a CPA with experience with Day Traders. I made the mistake of using a CPA who was not knowledgeable of the various was a person could day trade, and the various tax laws. A knowledgeable CPA, is worth the cost. Like you said we all have different requirements, but if people are consistently successful and profitable trading is an IRA is a great way to go to save tax dollars.

[@DaytradeWarrior]

Thank you!

[@memoryrinehart]

Some etf's like inverse ones are not tradeable from within an ira.

[@stkhnds]

Green Tax Service for traders would be a good resource. There is a video under the YCT KZbin channel.

[@DaytradeWarrior]

👍

[@scubasteeze6621]

You're the best. Thank you for this!

[@DaytradeWarrior]

You're welcome!

[@memoryrinehart]

I've never had broker list wash sales as "exempt" only disallowed.

[@DaytradeWarrior]

🤓👍

[@niv3344]

Not a CPA but I do know that Roth IRA is not tax free. The difference between Roth ira and traditional ira or 401k is that you need to pay the taxes for the cost base you purchased the stocks at and it depends on your bracket. The benefit is that after year of compounding when you retire and start using the money you already paid the taxes on it.

[@DaytradeWarrior]

I paid tax when I deposited my original 6k into the Roth IRA, but that’s it.

[@niv3344]

@@DaytradeWarrior yes that's what I meant. Sounded in the video like it's tax free... Thanks for your amazing content!

[@cocinandoporherencia2924]

@@DaytradeWarrior how do you qualify for Roth IRA when you make a lot of money day trading. There is a limit if you make to much money you don't qualify for a Roth IRA

[@pceng000X]

In order for your Roth IRA to be completely tax free it needs to be opened under an LLC. Then all the money deposited and all the gains are completely tax free! Read Tom Wheelrights book on Tax Free Wealth.

[@nathchongsuwat6867]

FANTASTIC video sir. The sentiment here is great for the trader/investor.

[@RafikiCuatepotzo]

Thanks for the analysis! I have a quick question: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?

[@fazlulchowdhury1907]

Important video! Last Friday, I purchased some stocks during market hours at $1.05. It showed up the same value before market closed. When I open my account next morning (Saturday) I followed that the purchased value is changed to $1.27 per share. I spoke to the broker about it. They said, it happened because of wash sale. I am suspicious about the price change during market closed hours. My question is that if it is for wash sale why they allowed me to buy at market value $1.05 and after that they changed value in off market? The price difference seems to be very high too. If any advice please share.

[@DerekSchaaf-e5x]

Thanks very much for your video. Extremely helpful and concise. Quick question about daytrading losses. Obviously, if you are an active day trader (and there is no question as to your status in that regard) you would pay your income rate on your gain. As per your example, if you made $100,000 daytrading, you would pay $20,000 ( or higher de[pending on rates etc) in income tax. My question is, if you have $100,000 loss, do you reduce that from your taxable income and in essence get $20,000 of that back? Thanks very much

[@elistrauf]

Thank you for this video! I have been wondering what will happen - I'm new to trading

[@gregoryburke3770]

I don't think you can use short term capital gains from stocks as income in an ira as its not considered earned income.

[@DaytradeWarrior]

👍🤓

[@lucasbebell7249]

Ross the GOAT 🐐 notification bell turned on

[@DaytradeWarrior]

Thanks for watching!

[@winningleader7911]

E*Trade provides wash sale amount per each stock the day after the transaction and keeps cumulating it.

[@DaytradeWarrior]

👍

[@vallong6338]

Will I be stuck paying taxes on the Gains column there or the Deferred Loss Column? We have no CPA's within 110 miles of me that can help. This is my first year and I am panicked. Thank you

[@divopts2012]

AWESOME Vid - Over 60 but I still may look into that Trading in an IRA Account or ROTH IRA??

[@DaytradeWarrior]

Thank you!

[@commentoria]

The short term capital gains cannot be moved to a 401k, A 401k is with your employer and the money you earn from them.

[@DaytradeWarrior]

👍🤓

[@echodelta_9315]

Just want to say thanks for giving back to youtube community by coming out with these smaller lessons lately. Really helps!

[@DaytradeWarrior]

You're welcome!

[@christianfiguroa7147]

What’s a good video on how to trade in a Roth IRA and what happens when you want to withdraw? And if you have a job how do you go about filing your taxes

[@DaytradeWarrior]

You can check out this blog for more info - www.warriortrading.com/how-you-can-day-trade-in-your-ira-account/

[@Mv3Trader]

Another key note is not all day trades are taxed the same. For examples, day trades on Futures are not taxed the same as day trading stocks. There's a completely different form to file commodities on. Plus, there's other ways to reduce your trading taxes with traders tax status, as Ross mentioned in the video.. The key is to make sure you speak with a CPA that specializes in taxes on the market you trade. Generalist CPAs (Like the one's you'll find at places like H&R Block for example) are best with regular W2 employment. Outside of that, seek the specialists and shop around before making a decision. ***I'm not a CPA***

[@tonychan8327]

Hello Ross, I never traded before, last year was my first year and I dont know much about trading but I start buying and selling every days, it seam like I am a day trader. I just received a 1099B a week ago. On the 1099B I make a gain of $8000 and a wash sale of $2000. How do you get rid of a wash sale when I file my income tax? Can you get rid of a Wash sale even you make a gain during the year?

[@DaytradeWarrior]

Hey Tony, We are unable to provide any personal tax-related advice and cannot recommend a specific CPA. Tax questions will depend on your individual circumstances. I recommend reaching out to a local CPA in your area to get more information. All CPAs should be knowledgeable about trading transactions, but be sure to confirm if they have dealt with these kinds of situations before. For our Warrior Pro members, chapter 18 of Day Trading: Strategies & Scaling (formerly the Small Cap Day Trading Course) (Part 2) is focused on taxes for day traders. We also have a few links on our website with some helpful articles we wrote about trading and taxes: www.warriortrading.com/day-trading-taxes/ www.warriortrading.com/maximize-tax-returns/ www.warriortrading.com/mark-to-market-definition-day-trading-terminology/ Taxes for Day Traders Video: kzbin.info/www/bejne/jXurmIB6rrOLgdE

[@JS-cu1ji]

Thank you Ross for all your content! Is there a brokerage that allows you to trade in a HSA account?

[@connorthornsberry4168]

Ross, Is Tax Trader Status and Mark-to-Market the same thing? I am a bit confused on how to apply for Trader Tax Status with IRS and if it is the same thing as Mark-to-Market? Thanks for the info!

[@DaytradeWarrior]

Yes, those are the same thing! Ross talks more about the subject in our classes. If you haven't had a chance to attend yet, one of the best ways to learn how to get started would be to join us in our next day trading class. The class is free to join, and you will receive a copy of Ross' best selling ebook "How To Day Trade" just for sticking around until the Q&A! You can learn more and register here, if you're interested: www.warriortrading.com/free-day-trading-class/

[@divopts2012]

@@DaytradeWarrior Hum, I thought they was different??? I thought You had to Actually Select MTM when you apply for TTS Thus I haven't Applied because I thought the two downsides was as MTM you can carry forward any losses, and as TTS you get taxed at the higher rate??

[@snow-beach]

If you are day trading with money in a Roth IRA, and don't physically remove the gains from the Roth, does this reduce the taxes you pay on a short term taxable gain ? (since it's in the Roth)

[@christopherkrasoulis7952]

Can I write off all my trading equipment purchased to start my day trading business without having an LLC or is an LLC required?

[@DaytradeWarrior]

We are unable to provide any personal tax-related advice and cannot recommend a specific CPA. Tax questions will depend on your individual circumstances. I recommend reaching out to a local CPA in your area to get more information. All CPAs should be knowledgeable about trading transactions, but be sure to confirm if they have dealt with these kinds of situations before. For our Warrior Pro members, chapter 18 of Day Trading: Strategies & Scaling (formerly the Small Cap Day Trading Course) (Part 2) is focused on taxes for day traders. We also have a few links on our website with some helpful articles we wrote about trading and taxes: www.warriortrading.com/day-trading-taxes/ www.warriortrading.com/maximize-tax-returns/ www.warriortrading.com/mark-to-market-definition-day-trading-terminology/ Taxes for Day Traders Video: kzbin.info/www/bejne/jXurmIB6rrOLgdE

[@chadgoyette33]

Day Trading beginner under 25k account and wash sale rule. My question is this, let’s say I execute 3 round trips on the same stock within the rolling 5 days, as a new day trader, the brokerage is going to add my losses to the next trade per share since I didn’t wait the mandatory time Frame. Is have a Mark to Market account the way to avoid this? I ask because what if I were to execute a trade based on the movement of 10 cents per share and the wash sale rule prevents my cover for the position I want to enter at? Not sure if I explained my concern of the wash sale for day trading the same securities correctly, and perhaps the Mark to market account eliminates that concern. Also new to your KZbin Channel today and have been watching all morning. Great information and I have been taking notes all morning.

[@DaytradeWarrior]

That would be a good question for your broker! Thanks for watching 🙂

[@jamienagy1224]

At what point in your trading career would you talk with a CPA? The studying or activity trading part?

[@DaytradeWarrior]

Once you commit to trading with real money. In sim it doesn’t matter, but with real money, do you want to make sure you’re doing it right and not setting yourself up for a surprise

[@erichuang2595]

What do you mean by buy back the “position” ? Whats position?

[@chrisv9977]

Move to the Netherlands since capital gains are not taxed and instead, your whole account is taxed at 1,5% of your total account value each year.

[@DaytradeWarrior]

👍🤓

[@mansoorp8355]

Still have to pay taxes as Americans after a certain threshold.

[@memoryrinehart]

That doesnt sound preferable. Your account is taxed yearly whether you make money or not?!

[@chrisv9977]

@@memoryrinehart everything above 50k, yes. But if you are profitable you are living in a tax paradise

[@skatchmo]

My TDAMERITRADE 1099 says I have over a million dollars in wash sale loss disallowed trades. But, I only have 100k in gains. I contacted TD and they assured me that I only pay tax on my gains, but this video has me freaked out. For perspective, I'm a very active trader (scalper) and I hold nothing long term. This is the fright of my life because for once I am successful and I'm scared somehow I'll be on the hook for hundreds of thousands of dollars in taxes. Has anyone with TD run into this? I should also note that I trade the same stocks every day of the year.

[@ademolaodewole1105]

Hi Anthony, I also use a TD account and scalp as well and I’ve got over 2m in wash sale loss disallowed and like you I’m freaking out.

[@skatchmo]

@@ademolaodewole1105 I've been assured by TD that it is ok. You'll only be taxed on actual gains. Let me know if you have any issues.

[@ademolaodewole1105]

@@skatchmo thanks for your time. Appreciate. Being profitable is hard enough. Getting caught up in tax shenanigans could be very devastating. Wish you luck my man and I’m open to brainstorming. Cheers mate

[@skatchmo]

@@ademolaodewole1105 Same to you!

[@lhotep]

Hey Anthony, you mentioned trading the same stocks every day. Do you mind sharing which ones? Just curious.

[@kylehoward4979]

This was the closest I've come to understanding the wash sale rule as it applies to day traders, so thank you for that. But I'm still so confused how it's applied to people taking short positions. 31 day, December 31st? What when where how why and huh?

[@DaytradeWarrior]

Of course, happy to help. A CPA that deals with trader tax is the best place to go for more detailed answers.

[@charleskramer1411]

ROSS I absolutely 💯 ❤️ this video! I actually was gonna ask you about this very topic! That's sooo 😎 thanks bro👊❤️🎯

[@DaytradeWarrior]

You're welcome Charles!

[@sfstilter]

Great video Ross however I wish you put more info in regarding 475f - Mark to Market election. There are a lot of rules that need to be followed or you will put yourself in a very bad space. Also removing the election is difficult and requires even more specific rules which I feel you should cover as many people will not survive day trading.

[@DaytradeWarrior]

Thanks for mentioning that, I’ll make a note to add to next time I teach the class.

[@divopts2012]

I think to get approved you need to meet some requirements. One of those requirement is 750 to 1000 trades per year??? I also saw a video years ago of the Problem with MTM on how your account is now handle. Meaning you can't carry losses to the next year, you have to claim all losses or gain at the end of the year?? Not sure exactly how that work. I have not applied but I'm Still doing Research on TTS - which may be a better Path I think that also has to be filed at the IRS.. and same requirements And may solve the Deferred losses??

[@italianstylepizzapasta7490]

Thanks Ross. I'm joining WT soon and taxes are something im gonna have to deal with.

[@DaytradeWarrior]

Thanks for watching!

[@dybo79]

Ross you didn't mention if you filed as Mark to Market? I've been keeping a log of losses so I know not to trade them depending on the size of loss. Mark to Market sounds like the way to go but I'm not making the big bucks yet so it wouldn't really make sense to form an LLC just yet.

[@DatGinnga]

Smart. I was trying to think of what do before my mark to market paperwork passed 👌🏻👌🏻

[@joescopo8933]

Ross, great video as always. Is there a link to the video that's all about setting up a backdoor Roth IRA? Thank you!

[@mohammedalameeri7553]

is it easy or hard to get an approval for 475f for new s corp ?

[@erichuang2595]

Do you teach how to start your own day trading business?

[@chance2302]

Very helpful!! Did you interviewany CPA's prior to settling with the one you have or did your broker suggest the CPA? Just curious and thanks.

[@DaytradeWarrior]

Thank you! We had to find one.

[@chance2302]

@@DaytradeWarrior gotcha. Thank you for the reply.

[@tradergirl7067]

Ross!!!! No one every told me about mark to market. Thanks man!

[@DaytradeWarrior]

You're welcome!

[@yahyajwad]

great video thanks. one side question. what is the best U S broker for future? and what is best off shore broker for future?

[@DaytradeWarrior]

Lightspeed: www.warriortrading.com/lightspeed-trading-review/ These are two offshore brokers that people in our community or our educators have used that you can research. For accounts under $25,000 (as little as $500), you can take a look at CME Group (US and all international residents except Canada). CME Group review: www.warriortrading.com/capital-markets-elite-group-review/ CME Group website: cmelitegroup.com For accounts under $25,000 Minimum deposit of $1000 available to anyone outside of the USA except Canadians: TradeZero review: www.warriortrading.com/trade-zero-broker-review-how-it-matches-up/ TradeZero website: tradezero.co/ TradeZero WT rebate program: www.warriortrading.com/tradezero-broker-rebate-program/ (Keep in mind that participation in a Broker Rebate Program is not required to trade or to be a member of our community. Rather, they can be an opportunity to receive discounted commission rates if any of these brokerages are a good fit for you.) This article can be a helpful resource for exploring your options for day trading with less than $25k! www.warriortrading.com/how-to-day-trade-without-25k/

[@daverave5880]

What great content! Thank you Ross for posting this. Just out of curiosity, why do you trade in a retirement account and a regular account? Obviously, you don't have to answer but I am just curious as to what the merits/demerits are (other than having to wait until you're 60 years old to withdraw from the Roth IRA) for using both types of accounts. Thank you for your time!!

[@mattcee7978]

Because he can even withdraw out of a roth and pay alot less taxes and withdraw tomorrow without paying as much as a regular account

[@oliverh.6793]

Yeah I think the penalty is 10 percent for pulling out a roth early plus it counts as income for that year, but if you've been growing it like crazy for 5 or 10 years the amount of money you will get in the end is a lot higher than trading normally

[@DieLechtaler]

Hello Ross, What with taxes if you a non US citizen living in Europe, and want to trade with a US broker? With kind regards

[@DaytradeWarrior]

Tax questions will depend on your individual circumstances. I recommend reaching out to a local CPA in your area to get more information. All CPAs should be knowledgeable about trading transactions, but be sure to confirm if they have dealt with these kinds of situations before. For our Warrior Pro members, chapter 18 of the Small Cap Day Trading Course (Part 2) is focused on taxes for day traders. We also have a few links on our website with some helpful articles we wrote about trading and taxes: www.warriortrading.com/day-trading-taxes/ www.warriortrading.com/maximize-tax-returns/ www.warriortrading.com/mark-to-market-definition-day-trading-terminology/ Taxes for Day Traders Video: kzbin.info/www/bejne/jXurmIB6rrOLgdE

[@regsmultiservices]

Thank so much for your videos😊😊

[@ryansm3417]

A key point regarding wash sales that I don't think you mentioned is that a wash sale will be triggered only if you sell (for a loss) then buy back within 30 days. There's some other caveats as well, but there's a couple decent youtube videos on just wash sales, search for them.

[@DaytradeWarrior]

Yes thank you that’s correct!

[@sebastiantevel898]

He clearly mentioned that....

[@cocinandoporherencia2924]

I have a hypothetical question, can you daytrade in ROTH IRA and have a LLC trading business for day trading and not worry about wash sales

[@DaytradeWarrior]

Here’s a great video on info about how to trade in an IRA.kzbin.info/www/bejne/p6SvoqaCbr1gitE Also, check out this blog for more info - www.warriortrading.com/how-you-can-day-trade-in-your-ira-account/

[@jons7436]

Thank you! This was very informative!!

[@DaytradeWarrior]

You're welcome Jon!

[@NinthDensity]

Ross is an amazing teacher. Everything is so concise and comprehensive. Subbed.

[@DaytradeWarrior]

Thank you very much!

[@sadiyazdani2884]

Thank you Ross. your video is very helpful. Is Roth IRA acceptable for day traders specially if you are over 60? Thanks

[@DaytradeWarrior]

Yeah, it's always a good thing to save for retirement. You're welcome!

[@la_uruguacha]

Thanks a lot for the info🙏🙏🙏🙏

[@DaytradeWarrior]

You're welcome!

[@ninaruseva6340]

Ross, are you persoanlly mark-to -market accountinng? are there any cons if one elects MTM?

[@DaytradeWarrior]

I enrolled in it years ago, I’m not aware of any downsides

[@backlund04]

This was my first year doing taxes after having my account officially flagged as a PDT. I had some gains in Crypto, and some losses in Stocks, which I was fine with the losses because it was going to even out my crypto gains a little. I had no clue on wash sales and they hit me. I guess it could have been worse from looking into it now. I had figured my tax data was wrong, but it wasn't. It was the wash sales. I will definitely be looking into mark to market and will prepare better for taxes next year.

[@DaytradeWarrior]

Sorry to hear that, but we're glad you were able to learn from the experience!

[@divopts2012]

Can you still claim those Wash sale Losses???

[@realMDizzy]

How many trades did you make that year? I'm just realizing now in my first year of trading that this wash sale rule may bite me come tax time next year.

[@mich3482]

I’m 14 yrs old trying to learn how to do taxes and learn how to create a llc for my future self so I could already know how to do these stuff before I grow up and this video help a lot thanks!

[@DaytradeWarrior]

Warrior Trading cannot provide support or services for people under the age of 18. As such, we won't be able to help you with your query. It is important to note, if you're under the age of 18, you won't be able to legally trade. However, you could still open what's called a custodial account with the help of a parent or guardian. You can ask a parent or guardian to read more on custodial accounts here: www.warriortrading.com/5-things-to-know-about-custodial-account/ I hope this is helpful. Please feel free to email us back once you are eighteen and we would be happy to help you further.

[@willl7134]

Did you create a LLC or Corporation for your business? I've been profitable for a few months now, so trying to figure out which route to go.

[@DaytradeWarrior]

I did a corporation, but I’m a big advocate of using a Roth IRA!

[@JoshuaBittner]

Ross, Thank you! You always put out helpful information. Cheers!

[@a1xlntautoglass]

Ross thank you for knowledge and time that u provide to the trading community. If I go in and out of a particular stock to take profits ( no loses ) and buy the same stock as it keeps on climbing and perhaps increasing my position, will that constitute a wash sale even though I have not lost any money ?

[@DaytradeWarrior]

Based on the wash sale definition yes. That said, it's important to reach out to a CPA knowledgeable in trading transactions that can help with your specific needs.

[@tuntun17cv]

Ross I have a question… CMEG is a foreign company and they only give you the executions info, they do not give any sort of 1099 or anything like that. Are you just declaring the difference of losses and profits?

[@DaytradeWarrior]

Carlos, we recommend reaching out to a registered CPA for help with taxes.

[@jonathanli2554]

Thank you Ross for the videos, just wondering if these taxes are just applying to US accounts?

[@DaytradeWarrior]

Correct! Tax rules will vary depending on where you live

[@vickipedia3253]

So wash sale means I am not allowed to deduct a loss of 10k from current year but how does that 10K loss becomes 10K profit??? It says you are not allowed to take that 10k as loss. So then it should be 0. No profit no loss, rather than taking my loss and adding that to my profit. This just doesn’t make any sense.

[@DaytradeWarrior]

We'd recommend reaching out to a CPA or account for help with taxes, as everyone's financial situation is different.

[@r.arodriquez4392]

Thank you thank you thank you 🎉

[@TheCornucopiaProject-bd5jk]

Wash sale : what happens if I have 1000 shares that hold a 20% unrealized loss. I buy an additional 1000 shares. And 2 days later I sell 1000 shares. Will this be a wash sale? Or do I get to use the 20% loss against my taxes?

[@jeremykopke5823]

Would love to set up a call with you over zoom. To see where I can improve in trading

[@DaytradeWarrior]

If you haven't had a chance to attend yet, the best way for you to learn more about trading and how you can get started would be to join us in the next live Warrior Trading webinar. The webinar is free to join, and you will receive a copy of Ross' best selling ebook "How To Day Trade" just for sticking around until the Q&A! You can learn more and register here, if you're interested: www.warriortrading.com/free-day-trading-class/

[@Cello69.]

It’s going to be a bummer for our more successful traders if the new tax bill gets passed. What it is 39% ?

[@DaytradeWarrior]

👍

[@yancyyst]

I use Webull, I have a margin account and roth IRA, can I trade both accounts at the same time that way I can gow them at the same time and if so how would I do that? thanks

[@DaytradeWarrior]

Yes it's possible to trade in both accounts!

[@yancyyst]

@@DaytradeWarrior Thanks, but I mean like let's say I take a trade with my margin account and at the same time in my Roth IRA account and is a scalp, is it possible to click a button and get in both account at the same time?

[@raydani8748]

@@yancyyst Ross replies once and only once 😂 you gotta make it count. I would say no, just because Ross doesnt seem to ever do them simultaneously. Same as when he does the small account challenge

[@darknessfierce4209]

No you have to trade out of each account individually

[@memoryrinehart]

@@yancyyst Sounds good, I've wondered the same thing, but one difference is you can't trade every stock/etf in an IRA that you can in a regular brokerage account.

[@rizwan101]

Can someone tell me the UK tax rules for day trading US Equities.

[@DaytradeWarrior]

We would recommend reaching out to a CPA in your area for that information.

[@NYCwatcher7]

Hi Ross, thanks for taking the time to make this video, highly appreciate it as I have been struggling with my taxes for a while. I have an issue though: I have not received a confirmation from IRS regarding the mark-to-market election that I filed last year with my taxes. And as a result I still have wash sale losses. What should I do about this?

[@DaytradeWarrior]

It would be best to check on this with your tax specialist

[@memoryrinehart]

They might not with how busy they are. And there's something else they require to file- form 3115, to change accounting methods, tho if you don't file it that won't invalidate your election, they say. Read tax topic 429. Headaches.

[@charleslenox6967]

Thanks Ross! Very informative!!

[@DaytradeWarrior]

Thanks for watching!

[@charleslenox6967]

@@DaytradeWarrior ..my fiancée and I took your class last summer during covid(2020). I learned alot. Did the simiulator everyday etc... Finally have my money and im ready to get into it.....slowly! Happy Easter!

[@vickipedia3253]

Is it possible to consult your CPA/Accountant?

[@DaytradeWarrior]

We recommend it!

[@vickipedia3253]

@@DaytradeWarrior where can I reach him?

[@vickipedia3253]

@@DaytradeWarrior Hey Ross, it’s kinda urgent… May I get in touch with your Accountant? My CPA has prepared my short term capital gains as Ordinary income and making me pay higher tax rate plus not letting me take advantage of losses I made.

[@rossbednar5197]

Thank you Ross! Followed

[@DaytradeWarrior]

You're welcome Ross!

[@JustinTrader85]

Can anyone answer whether an Scorp, set up to exclusively day trade, is eligible to take the 20% pass through QBI deduction? Im getting a lot of fuzzy answers. if "it depends", what does it depend on?

[@memoryrinehart]

IRS has an info number. Best to get it right from the horse's mouth.

[@lovepeacewar32]

Thanks !

[@DaytradeWarrior]

Thanks for watching!

[@laurentsmartens3825]

Do you pay taxes on a profitable trade? Or dou you pay taxes of what you have left over? For example. I made profitable trade 100$. And a losing trade 75$. Do you pay taxes on the 25$ u have left over? Or do you pay taxes on the 100$ profitable trade?

[@DaytradeWarrior]

We have some blogs on taxes here: www.warriortrading.com/day-trading-taxes/ www.warriortrading.com/maximize-tax-returns/ www.warriortrading.com/mark-to-market-definition-day-trading-terminology/ It would be best to reach out to a tax specialist for more info.

[@jameskeeler6321]

Last year I had 85k in wash sales, and 7000k in over all losses no profit whatsoever. I was told I would owe taxes on the wash sales lest my net loss. That is insane that means I would owe taxes on a 78000k loss. Please tell me I have been misled. Thanks

[@DaytradeWarrior]

Hey James, We are unable to provide any personal tax-related advice. Here are few links on our website with some helpful articles we wrote about trading and taxes: www.warriortrading.com/day-trading-taxes/ www.warriortrading.com/maximize-tax-returns/ www.warriortrading.com/mark-to-market-definition-day-trading-terminology/ Taxes for Day Traders Video: kzbin.info/www/bejne/jXurmIB6rrOLgdE

[@rgonzalezjr311]

I am still confused. Maybe someone can answer. e.g. You make 20K and lose 15K. You have a disallowed was sale of 15K but have. A net profit of 5K. Are you liable for the full 20K in taxes or only the 5K. Your not trying to write off any loss or declaring a loss. You just want to pay taxes on what you owe. Can someone answer clearly?

[@SH-jv5uf]

Question: Can I day trade and start taking social security retirement benefits this year when I turn 62 without the trading impacting my monthly social security check?

[@DaytradeWarrior]

That is a better question for a CPA or Financial Advisor. Tax questions will depend on your individual circumstances. I recommend reaching out to a local CPA in your area to get more information. All CPAs should be knowledgeable about trading transactions, but be sure to confirm if they have dealt with these kinds of situations before.

[@SH-jv5uf]

@@DaytradeWarrior Thanks.

[@khaledkhan1741]

THank you Ross. Very helpful info and tips; as always.

[@DaytradeWarrior]

You're welcome!

[@amorfati5005]

Always good content thank you Ross!!!

[@DaytradeWarrior]

You're welcome!

[@ericagrant3197]

Thank you for sharing!

[@DaytradeWarrior]

Hey Erica! You're welcome 🙂

[@cbriones06]

Does an llc have the wash sale rule eliminated by default or do you still have to apply for MTM for that llc.

[@jhi8h194]

It’s eliminated but u need 25k+ to keep the lvl running

[@isaiovando9244]

What if im down 200$ since I started on my cash account do I still have to fill out my taxes ?

[@hakuinz4226]

No they don't care about losses .

[@DaytradeWarrior]

Profits are taxed, losses are not.

[@INNO222]

Great clip Ross.

[@DaytradeWarrior]

Thank you!

[@bind6404]

Hello Ross. Thank you for your video. I have a question. For example, if I made $1M, then lost $1M. Will I be taxed on $1M gained?

[@InktoLife99]

No. You made gains of 0

[@joefinley4006]

Futures are taxed at along term capital gain even when day trading

[@DaytradeWarrior]

Thanks for sharing!

[@J123G]

Futures gains are 60% long term and 40% short term.

[@Minnesotadude222]

Another fantastic, informative video. 🎯

[@3loo_]

bro how do you have a video for every question i have

[@goldenageenthusiast]

Watch out for wash sales OMG.

[@DaytradeWarrior]

👍🤓

[@Teddy_Blanks_TV]

How does someone trade inside of a Roth IRA? Do you have a video on this?

[@DaytradeWarrior]

www.warriortrading.com/courses/day-trading-ira/

[@Anthony-wp1by]

What is your opinion about self proprietorship?

[@MyMathProfessor]

Thanks! I have been waiting for this.

[@DaytradeWarrior]

You're welcome!

[@fdurm01]

Sorry can someone please explain to me for example my balance is 10 and I made profit of 10 then again I trade that 10 I made will I taxed on that 10$ I profited then lost?

[@DaytradeWarrior]

You will be taxed on your end p/l for the year if you made 20 lost 10 made 10 = 20