Qualify For Day Trader Tax Status in 2023!

[@BrianRiveraCPA]

🖥 Traderfyles - automate your capital gains reporting! www.traderfyles.com

[@thomasschueller1529]

I have spent the about 12 hours this weekend researching CPA's specializing in stock trading taxes - your videos and comments are by far the clearest and most substantive of anyone's I have reviewed. As a former non-tax CPA ("Big 8" compared to your "Big 4" - which certainly dates me) I understand the importance of partnering up with a stock tax specialist with trading expertise, especially in the complicated world of trader taxes. I will definitely be hiring your team later this year when I am ready to have you set up my multi-member LLC for trading.

[@ricardoebey]

Powerful. Looking forward to doing business with you soon!

[@montbeltrading]

Good information. Well done.

[@YoungMoneyInvestments]

With prop firms like Apex Trader Funding or Top Step giving traders an annual 1099, can a trader still be classified as a day trader based on the minimum trade requirements if they are inside a funded prop firm account or are those profits taxed differently than profits obtained in a similar manor in your own account?

[@Peacefulpriority28]

So happy to see a video from your channel! Can’t wait to become a client. I have one question, does the Wash Sale rule apply to Forex and crypto day traders/scalpers?

[@BrianRiveraCPA]

Thanks! Does not apply to forex or crypto traders. Stock and options traders only

[@r.arodriquez4392]

Thanks for the video it helps a lot.

[@VicFix]

One question I can't find ANYWHERE.... is there any tax disadvantage to trading a zillion times over the course of the year, hopping in and out of trades when I can make even the smallest profits...? Or are my earnings just a sorting of the difference between the total buys and sells, regardless how many times I made a trade? In 7 months I've made maybe $50K but the amount of money moved over that time was shocking to me. Even the total number of trades I've made (many thousands, I have the $25K+ PDT rule covered) was totally unexpected, and I've been worried that somehow the extreme totals of my buy&sell actions might have some kind of tax effect. Does this come with some kind of danger or expense that I don't know of yet....?

[@BrianRiveraCPA]

Disadvantage ? Probably over trading without any success.. uneducated about the wash sale rule (your taxable income could be higher than realized gains). This normally happens if you trade the same ticker over and over again without rotation.

[@VicFix]

@@BrianRiveraCPA Nope, I know about the wash sale rule from your excellent video on it. 🙏 So if nothing else stands out to you, that's what I was wondering. I really appreciate the reply.

[@kevinstrong7520]

@@BrianRiveraCPA I thought the wash rule doesn't apply if you are granted market to market trading status by the IRS?

[@exqvision]

Can you clarify economic significance? You mentioned getting close to million plus. Does that mean the total volume traded throughout the year is close to a million dollars?

[@BrianRiveraCPA]

Exactly usually a million plus in sales proceeds for equity traders.. options sometimes a little lower due to cheaper options premiums.

[@vidvirtudes6829]

So despite meeting other criteria of the behave but encomic significance was 50000 then that disqualifies? Is that net return? What about losses ?

[@josephdennehey4126]

Thank you, Brian!

[@popswaller]

Super stuff! I was wondering about traders' exemption from wash sales. Can they be used as ordinary losses in the same year to offset ordinary gains or do they have to be carried forward as an NOL for future years offset (at 80%)?

[@rachannel9190]

Hoping you can answer this question, what if you meet all the criteria for active day trader, but currently incurring losses, will that disqualify you for TTS? Thank you.

[@jenjuni_]

any information about Futures contract taxes?? Like ninja trader platform??

[@GRIV22]

Def Subscribed and ready to level up!

[@BrianRiveraCPA]

🙏🙏

[@Lazee_Dreamah]

Does it work with crypto also? Definitely a great tool to get sd I'm fairly new to the to all of this..thanks for the great video. Would be awesome if you could do a video explaining on crypto taxes in detail especially regarding the bankruptcy crypto exchanges and how all that works for filing in 2024.

[@BrianRiveraCPA]

The integrations for crypto are still a work in process. It reads CSV data well so if you have issues just ping customer service and they will be able to format it for you.

[@MellowMusic1]

Awesome stuff 🙏🏽🔥⭐️

[@blkcyborg92]

Is this an app or just a website for now?? (Couldn’t find the app) Also what is the process if I trade for a PropFirm but no profits of yet. Just desk fees/evaluation cost & other expenses.

[@BrianRiveraCPA]

Yes you have to click “get started” to register for a free account.

[@NoeCastellon]

What about Prop firms if we get a 1099 each year? Do you have any info on best tips?

[@zeeelle123]

If I started day trading (meeting all criteria) in Nov 2024 and had wash sales, is there anyway I can qualify for tax trading status for Nov and Dec if I continue trading for the rest of 2025? Or do I HAVE to trade 189 days and 720 trades within one calendar year???

[@TAP-0571]

Thanks bro 🙏

[@BrianRiveraCPA]

🙌

[@marvinjohns5105]

Can you do an example of mark to market from one year to the next?

[@BrianRiveraCPA]

Of how to do the election?

[@adrianlucatero5945]

Does all this apply to futures trading as well? Also how are taxes on funded accounts (forex and futures)?

[@BrianRiveraCPA]

Yes to futures - no to funded accounts. Funded accounts receive a profit split which is treated as independent contractors.

[@Blackbeard0911]

So If we use funded accounts for futures, it will be taxed as regular income since we are considered independent contractors, correct? @@BrianRiveraCPA

[@sanderstrakouri]

@brian rivera i just found out about you brother. Love your content and knowledge. Im a Tax professional, Trader as well as an accounting student. I will definitely be setting up a call with you soon. Does your software work for us future traders as well

[@BrianRiveraCPA]

We are working on a future release for form 6781 .. futures trader reporting as well

[@NoahShort_CPA]

Great video and quality software! I highly recommend it!

[@BrianRiveraCPA]

🙏🙏

[@SamIAm120]

Do you have any recommendations for a new forex trader for a cpa in the north jersey area ?

[@vchafab]

Is there anyway to qualify for TTS status if you start mid-year? Would they consider the same percentage of trading days from the day I started trading?

[@dagobaker]

what if you started as a long term trader but switch to day trading in june.... if you traded 100% of the days (plus some in the first 5months) and did 20 trades per day? do i need to file something now?... next year its LLC and or S corp im guessing

[@rakishman1313]

So to by pass the 189 day rule and trader status rule , establishing a trading LLC , what type of restrictions would one have ? Thanks

[@BrianRiveraCPA]

Won’t be eligible for section 475(f) mark to market accounting

[@rakishman1313]

@@BrianRiveraCPA hm what i researched was the LLC is not subject to normal trader qualifications as an individual . I am establishing a new firm let s say in July. It would not make sense i won't be eligible for market to market accounting int hat case. Would you mind elaborating on this answer?

[@rakishman1313]

@@BrianRiveraCPA what’s the best way to get a video consult with you and what are the charges involved ? Thanks for getting back to me

[@4AMPizza]

In 2023 I placed many trades--over 1000--and mainly focused on short-term swings in the market. This is my main source of income. I do this every day etc etc. After tax loss harvesting however, about half my income was dividends / interest and not trading. And so, in terms of profit, after selling losses, half of profit is not swing trading, half is actually dividends and interest. Can I claim trader tax status? Thank you.

[@ALittles-ye8ic]

What’s the benefit of becoming dAy trader tax status ?

[@orderflowdojo]

Futures 60/40 baby

[@BrianRiveraCPA]

🔥🔥🔥🙌

[@grltrader]

What about trading losses? And are there advantages using an LLc vs sole proprietor?

[@BrianRiveraCPA]

Trading losses capital loss treatment. Mark to market = ordinary loss but you must qualify as a trader to use mark to market

[@bluemoon3014]

My trade volumes, trade frequencies on hours and days, holding period, and size of account all meet day trader tax status. I do 1,000 to 2,000 trades per year mainly on Put Options Sell of Open and can generate 6 figures income. The sales proceeds of put option is the premium (is this correct?) and since I am doing mainly Put Option, it doesn’t generate economic significant like buying/selling stocks. So can I still qualify for day trader tax status if my sales proceeds is no where close to $1M plus? How do you calculate sales proceeds on Put Options?

[@BrianRiveraCPA]

Correct. It’s the total of all of your sell to open orders that were executed.

[@bluemoon3014]

@@BrianRiveraCPA thank you - Can I still qualify for day trader tax status if my sales proceeds is no where close to $1M plus?

[@RowanBlackFx]

What about Forex?

[@therealchrishill]

That’s the same thing I’d like to know as well

[@BrianRiveraCPA]

What about forex ? Forex traders can qualify for trader status ; but reporting is summary format. Not individual trades

[@janalgos]

Does Traderfyle work for crypto trading? Also, do crypto traders qualify for 475f election?

[@bogartdonnovan9537]

New partnerships that Xeventy annouced will skyrocket XVT token soon.

[@eliflores8805]

I’m curios, if you open a LLC trading for your self is it necessary to get a EIN for the LLC?

[@BrianRiveraCPA]

Yes it is

[@JoseHernandez-sz3iq]

Gracias , i am new at this , but i live in New York would you be able to do my taxes? I also trade options with about 5000$ and funds settle by next day or second day. Must i still qualify with the 25,000$ as in stocks? what is 1 UNIQUE TRADE? Thanks in advance

[@BrianRiveraCPA]

If your able to hit all criteria with a cash account it’s possible to make it

[@woktrading]

Hey brian , i don’t know if you will respond but any help is useful . I have traded ticker symbol AAL through december and january . i did end up green on the ticker but i know this moved the wash sale deferred to 2024 year and i cannot claim it in 2023 but i traded the symbol in 2023 with Td ameritrade and 2024 with Tradestation what do you recommend me to do ??

[@BrianRiveraCPA]

Id recommend trying traderfyles to make sure you have visibility of your wash sale deferrals

[@pasha904]

What is considered a unique trade... ? Tnx

[@BrianRiveraCPA]

Trade execution

[@mrkites3524]

hello i do crypto trading maybe 2-3 trades 4 times a week some trades will be sold within 31 days can i do mark to market

[@ydvmdhr]

Can a full time W2 employee qualify for Trader status if he/she meet all BEHAVE conditions?

[@autosuggestion1739]

To meet the numbers of trades and days required in a year , can they buy one share in one minute and sell it in the next minute?

[@BrianRiveraCPA]

Absolutely. 👍

[@autosuggestion1739]

Thanks for reply.

[@Swuayy]

Greetings!! I am interested in knowing how i can get in communication with you since I am looking to file this year. I am a funded trader and have been having difficulties finding a tax professional in this field.

[@BrianRiveraCPA]

Shoot an email to our team at [e-mail]

[@Swuayy]

I have about two weeks ago and never received an email back @@BrianRiveraCPA

[@Divyv520]

Hey Brian , really nice video! I was wondering if I could help you enhance Editing in your videos and also make a highly engaging Thumbnail which will help your video to reach to a wider audience ?

[@BrianRiveraCPA]

Send me your portfolio

[@Stm820]

does the tax qualifier status apply if you're only trading the indices market on a daily basis?

[@BrianRiveraCPA]

Applies to stocks, options, crypto, forex and futures.

[@Ryan-ff6tn]

What if we trade once a day, 5 days a week?? Would we qualify?

[@joej1511]

HOLD ON. There’s away around the $25,000 day trading rule?? Is that what I heard?

[@mr.fxexchange9144]

i just started my forex business does this work with the forex platform.

[@BrianRiveraCPA]

Forex reports in summary format.. for now it’s on our product road map

[@adeoladada3793]

Quick question. Does your firm have a lot of experience with spot forex traders that want to benefit from IRS 1256 treatment for forex futures/forex forwards contracts. Essentially trading Forex Majors for the US Dollar. Does your software handle importing data from Forex brokers. Thanks. Appreciate the video.

[@BrianRiveraCPA]

It’s on our development roadmap.. because 1256 contracts report in summary format; there is not a need to report every single trade.. your trade data just needs to be summarized for trader status

[@timothykelbert9848]

work for forex?

[@MrMaier3000]

Hi, what if you're a funded trader??

[@BrianRiveraCPA]

Not applicable . Funded traders are independent contractors

[@MrMaier3000]

@@BrianRiveraCPA is that a bad thing for a funded trader tax wise??

[@BrianRiveraCPA]

In the beginning no; but as your profit rises you’ll have an additional layer of tax called self employment tax which is on top of federal/state income tax.

[@joemaderecipes]

Let’s go!

[@BrianRiveraCPA]

🙌

[@YonatanSoto-cg6rm]

Xeventy's billboard caught my eye. Had to look it up, and the presale seems intriguing!

[@mrkites3524]

hello

[@alai908]

calling you asap

[@lawrencecopelandiii6524]

🙌🏾🔥🙌🏾🔥🙌🏾

[@Emiliofuentesflores]

Invested in Tier 2 for that sweet 10% bonus. Let's go Xeventy!

[@leeroidlee2607]

Welp you don’t speak about futures or forex……open market for you tax experts

[@BrianRiveraCPA]

we cooking no worries..

[@LikeFatherLikeSonIam]

Hey Brian. This is a more personal question, but are you a follower of the Lord Jesus Christ?