DAY TRADING TAXES! EXPLAINED!

Day Trading Taxes! We talk about DayTrading taxes and how they work. Have you ever heard of a Wash Sale? Have you thought about becoming a Maker to Market classification with the IRS. Lets talk about how Taxes work when you're a DayTrader!

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[braidenchesnutt]

Bullish or bearish, AI stocks will still dominate 2024, even beyond. Why I prefer NVIDIA is that they are better placed to maintain long-term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.

[ChristopherAbelman]

I recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

[jimle]

Uncle Sam is the only trader to take on zero risks and net 39% trading profits annually. Even Warren Buffett cannot match Uncle Sam's success.

[PatrickWieland]

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[WyMustIGo]

Another thing to consider: If you start making a lot, you must pay your taxes quarterly. If you owe too much at the end of the year, the IRS will tag on a HUGE penalty.

[stockchartsteve]

Simple solution. The trader simply has to elect the 475 MTM option on his tax return, and then his gains and losses will be treated equally as income or losses, and the losses will not be subject to the wash rule. A must for all day traders.

[jeff]

I would add that one of the benefits of trading futures is that you only pay a 60/40 split of capital gains and ordinary income tax and the wash sale rule does not apply.

[mmmoneymarketing]

For some reason I watched you out of curiosity one day scrolling on youtube and now im business oriented so when I see you're video i pick you. Thanks for all the info you give out

[gingergander]

Futures trades are taxed much less but only tax consultants that know futures seem to know this. Make sure to get one of those Chicago based specialists if you make more than 100K trading futures.

[TrnchAnn]

He had a good idea for a video and did very little little prep.

Probably a good idea he keeps saying take what I’m saying with a grain of salt and go consult a certified professional .

He forgot to mention that short term gains tax is essentially whatever income bracket you’re in so if you are trying to daytrade on the side and you have other income, you need to account for what bracket your total income is putting you in and that is going to be what your tax at when it comes to those short term capital gains .

Also, do not pretend like you’re a self-employed person when your daytrading because you do not pay the self-employment tax, you only pay the short term capital gains tax, which happens to be your income tax bracket .

[toms]

You are a hero, Patrick. ✌️ I mean that. I appreciate ya looking out for us - leaving the prerecorded videos while you’re out doing life stuff. I was very excited when I saw this notification.

[SSEnrich]

I am not from America, but I guess this is quite similar in all countries. I am a scalper and either if I win or lose there will only be small amounts as I am working on a 100 $ account. Why on earth do I have to write down each trade? Why can't I just show an annual balance?

[Mikej]

so what you're saying is, I need to hire an accountant :-)

[dbzwarlord]

4:04 "Being a Mark to Market trader has no other advantage. Being a Mark to Market trader has another advantage."

[rjkilla]

when you said 39 % i almost died. wtf is that law all about?

Do you have to pay taxes once profits are realized or when you send it to your bank account?

[jacobhernandez]

this needs more views! I see trading as a business. This is definitely part of risk management and something that needs to be known for people thinking about day trading full-time. Uncle Sam WANTS YOU lol thanks Patrick!

[travisoutten]

How does it work if you make let's say 100k from a regular job and a 120k from day/swing trading in a given year? Do you pay federal and state taxes on the combined amount (in this case 35% plus state) or do you pay 24% (plus state) on regular income and just 24% on you short term cap gains? Basically, ~42/43% on 220k or ~31/32% on 100k and 24% on 120k?

[ebyvids]

Wait so the only difference between crypto and stocks is you pay tax on any crypto to crypto trade? Why are they saying its treated like property?

[bobcharles]

Question> If you are qualify as a "day trader" according to the IRS rules. You already said you don't have to pay self employment tax and there any other taxes you have to pay vs being a investor??? Do you have to create a company (sole proprietor, LLC, ....) ??? Or is it just filling out forms on the tax return??? If you really qualify to be a day trader are there any tax down side or is it all upside.