Qualify For Day Trader Tax Status in 2023!

Discover how to qualify as a day trader in 2023 with TraderFyles. This video guides you through the essential criteria, including trading volume, unique trading days, and crucial tax reporting with Forms 8949 and 4797. Whether you're a seasoned trader or new to the game, TraderFyles is the tool you need to streamline your journey. Stay ahead in the trading world with expert tips and insights.

Time Stamps
0:00 Introduction
1:40 Trader Status Criteria (1:51 link old video)
5:09 How To Determine # of Trades
5:31 Number of Trading Days
6:46 Economic Substance
7:30 Tax Reporting For Day Traders

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DISCLAIMER: I am not a financial adviser but fortunately I am a CPA :). These videos are for educational and entertainment purposes only and should not be taken as "individualized" tax advice. Should you need tax solutions I highly recommend consulting with a professional or our CPA Firm. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: I only recommend products and services I truly believe in and/or use myself. Some of the links on this web page are affiliate links, meaning, at no additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. Commissions earned will be used towards growing the content this channel.

[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?

[rachannel]

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.

[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%)?

[pasha]

What is considered a unique trade... ? Tnx

[joej]

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

[thomasschueller]

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.

[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

[NoeCastellon]

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

[beniamincadar]

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

[ALittles-yeic]

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

[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....?

[ricardoebey]

Powerful. Looking forward to doing business with you soon!

[jenjuni_]

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

[blkcyborg]

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.

[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?

[adeoladada]

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.

[FIRE_AtTheBeach]

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.

[AMPizza]

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.

[leeroidlee]

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

[adrianlucatero]

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