I am wondering what the tax implications are for daytrading the
market indexes (I am thinking of using the 15 Minute charts)
They seem to catch the major moves each way.
I have an IRA and 401K account and I can't buy and trade within
a 3 day window.
The tax implications for gains and losses from daytrading are
the same as for any other short term gains. Daytraders who
are active on a regular and consistent basis though would generally
be eligible to treat their trading activity as a business though
(rather than as a passive activity) and therefore to take expenses
that other traders can't, such as for educational, computer and
other tech tools, office, internet access, etc. expenses. For
some reason though, traders who can treat their trading as their
occupation are not subject to social security taxes on their
business as are others who are self-employed in other
businesses.
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Tax Implications
Posted by finam on 8th of Jun 2008 at 03:14 pm
I am wondering what the tax implications are for daytrading the market indexes (I am thinking of using the 15 Minute charts) They seem to catch the major moves each way.
I have an IRA and 401K account and I can't buy and trade within a 3 day window.
Thanks, Finam
The tax implications for gains
Posted by martin on 8th of Jun 2008 at 06:09 pm
The tax implications for gains and losses from daytrading are the same as for any other short term gains. Daytraders who are active on a regular and consistent basis though would generally be eligible to treat their trading activity as a business though (rather than as a passive activity) and therefore to take expenses that other traders can't, such as for educational, computer and other tech tools, office, internet access, etc. expenses. For some reason though, traders who can treat their trading as their occupation are not subject to social security taxes on their business as are others who are self-employed in other businesses.