Don't Make These Mistakes! Taxes for Day Traders

Before we continue...👀

💰Remember, day trading is risky and most traders lose money. You should never trade with money you can’t afford to lose. Prove profitability in a simulator before trading with real money. 

🍏 All of the content on our channel is for educational purposes only. No data, content, or information provided by Warrior Trading, the Site, or the other products and services of Warrior Trading, is intended, and shall not constitute or be construed as, advice or any recommendation to buy, sell or hold a particular security or pursue any particular investment strategy.

Still with me? 

Now let’s dig into some helpful information …

0:00 Intro
00:28 Short term vs long term capital gains
3:23 Wash Sales
6:55 Mark to Market Accounting
12:18 Tax free vs tax deferred
15:33 Closing

#daytrading #warriortrading #rosscameron #stocks #learntotrade
Warrior Trading // Ross Cameron // Day Trade Warrior

[aschkansabaghi]

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

[larkkenmars]

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

[rustedironhorse]

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!!

[Futbolnews]

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!

[obijuan]

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.

[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...

[susiesunshine]

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

[fourtrax]

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.

[MvTrader]

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***

[nathchongsuwat]

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

[NinthDensity]

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

[echodelta_]

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

[stkhnds]

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

[lucasbebell]

Ross the GOAT 🐐 notification bell turned on

[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.

[wread]

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

[homonsta]

Trade within a Roth IRA and more than 59.5 with account opened at least 5 years and there are no taxes. EVER.

[niv]

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.

[tradergirl]

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