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| stockmarkettips |
 Posted: Tue May 06, 2008 5:47 pm Post subject: Day Trading and Tax Hassle |
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Investing Manager
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| I don't day trade, but I'm curious about how one does their taxes who day trades. Do you have to record every transaction at the end of the year? Are there any online brokerages that do all this math for you? |
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| Im Not Warren Buffett |
| Posted: Tue May 06, 2008 6:41 pm Post subject: |
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CFO
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| I have a friend who is a very active trader - probably pays about $1000/month in trading fees - and he mostly just disappeared for a week leading up to tax day. |
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| deprived |
| Posted: Wed May 07, 2008 4:18 am Post subject: |
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Investing Sr. Associate
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yea, most broker houses abandon you during tax tme- it your responsiblitiy to process your tax info. The tax rules for now (subject to change) is short term stocks, trading within 1 year and a day is subject to the 30% tax bracket. Long term trades over the 1 yr 1 day rule is sbject to 20% percent bracket. The extra 1 day part is to ensure you don't sell 1 day to early and get hit with the 30%. The borker houses will send you a copy/electronic delivery a copy of your Form 1099-DIV, but you must do all the math.
i suggest to open a savings account and depositing the appropriate tax amount into it - (Do not withdraw until tax day). I would not try to adjust for losses until the end of the year- this way you may have a little left over you get to keep. |
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| stockmarkettips |
| Posted: Wed May 07, 2008 1:55 pm Post subject: |
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Investing Manager
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| it sure would be nice if a place like ameritrade could just export the data in a file format that a place like turbotax could read. it's a hassle to enter a buy date, sell date, cost basis, etc for every single stock you sell. |
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| entreri28 |
| Posted: Fri May 09, 2008 12:35 pm Post subject: |
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New Poster
Joined: 18 Jul 2007
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| If a person was going to day trade, would Zecco be the best? Since they have free trades and low commission after the free trades. I was just thinking of trying day trading myself, but I don't have lots of money to start with. |
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| Staggs |
| Posted: Fri May 09, 2008 3:06 pm Post subject: |
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Investing Sr. Associate
Joined: 19 Jun 2007
Posts: 142
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Ya know, it's really a shadow area. If you claim taxe or not I suppose.  |
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