Trading Taxes EXPLAINED! Step-by-Step

yesterday is Wednesday June 10th and this is episode 52 now the goal of this show is simple I want to show you that trading can be simple and that you can do it so if you want practical tips tricks and strategies for your trading as well as watching me as I grow small accounts into larger ones then then this show is for you so today we have a big day first of all today was the FOMC statement or the FOMC meeting concluded and we wanted to see what is happening so we'll take a look at how markets reacted and we're continuing our discussion about trading as a business or today we're talking about trading and taxes now before we get started let's just make sure that we are good to go that you can see me and hear me if you can do me a favor leave a comment really quick or click on like this way I know that we are ready to get started and as always what we are doing is talk about the markets in five minutes or less okay let's jump right in so here we see a five-minute run of the SMP and as you can see right now the SMP is around the unchanged mark why what is happening today well today the FOMC policy statement was released so it was released in the afternoon and everybody was a little bit nervous going into today so as you can see this morning we open up and immediately polls lower so this here are the vertical line that you see here when we open this morning and then we pulled lower and you see it was super super quiet ahead of the policy statement now this was released and as soon as it was released more Goods jammed up why because in the policy statement it says that the Fed sees rates near zero through 2022 so this basically means rates won't change interest rates will stay at this extremely low level until at least 22 2022 they also said you know what we won't keep pumping money into the economy so yes we will still buy Treasuries we will buy mortgage-backed securities and we will support the flow of crap it's too household and businesses and you see shortly after the statement was released this is when Fed chief Powell had a press conference now this is where he had a few remarks here that traders didn't like this is what's happening so he basically said you know what a full recovery is unlikely until consumers feel confident and this might take a while everybody thought whoa what are you talking about I thought that we already have a full recovery because if we look back here at daily charts right we see that the sp500 here is close to a full recovery it's positive for the year and we're close to make new all-time highs the Dow is also on its way to recovery and the Nasdaq oh my god this on fire making new all-time hives yesterday we top 10,000 for the first time ever and today nastic is just marching higher so this were of course traders got a little bit nervous if you're looking back at a five-minute chart here and saying well we'll wait wait what are you saying we were not yet recovering because I thought that we were recovered but this were right now traders are digesting it so we're going right back and you see pretty choppy until the entree around the unchanged mark I I do believe that we will see a stronger reaction tomorrow when we see what the rest of the world thinks about this anyhow so this is what's going on in the indices now let me talk about a few stocks that that caught my attention here today and also yesterday one of the stocks that caught my attention was Chesapeake and I know that in the previous coffee with Marcus somebody asked about it and said oh my gosh what do you think about it look at this it is going higher and higher I mean it went from $13 up to all the way to $75 so holy moly what is going on here and I said well whatever goes up that quickly parabolic moves must come down do you remember us talking about it and sure enough here's what happened crash-and-burn there's a few other stocks that do the same thing hurts and I mean like Chesapeake hurts is also a bankruptcy candidate and Hertz was just surging from what 86 cents here all the way up to above $6 but then it is crashing and burning here right now so what is happening well I don't know why but for some odd reason I found this article that Robin Hood traders of all traders right uh piling into herd stray sheep any and other bankruptcy stock despite the massive risk so we have a lot of small traders because see most people who have for Robin Hood account recently read a stats there that most people have around a two thousand dollar account and this were we see a massive influx there in fact apparently there is even a website that is called Robin track there it is which monitors so many Robin Hood users are holding a particular stock I didn't even know that this is public knowledge apparently it is right so a massive surge in ownership and oh boy I believe today and yesterday some of these people got hurt you know me I mean I rely on the power X optimizer to find the best stocks and Optus a trade that's the software that I personally use and this I've been able to grow a small $20,000 account pretty pretty substantially thus far so I mean I relied rather on this okay twenty seconds left what else is happening well in the same way as we had hurts and Chesapeake rallying up and then crashing we have the same in the airline's so American Airlines when all the way our parabolic moves and now crashing and burning see this is where it goes back to trade what you see not what you think right and apparently there's a bunch of people right now who trout who traded what they thought and they are getting hurt today okay our timer is up anyhow this is what is happening in the market so what can we expect for the remainder of the week well everybody was waiting on today's statement and today's statement didn't show any surprises and this is what traders were looking for as long as there are no surprises I think we will drift higher I mean we see it today the Nasdaq is just making new all-time high the Nasdaq is up almost 2% look at this 1.7 percent again down SMP going back and forth around the unchanged mark so a little bit lagging here the tech index but that's what's happening okay so good to see you hey by the way do me a favor if this is your first time here if you're new to the show type in new because I'm I'm just curious if you're here for the first time by the way I'm Marcus Hyde color and again in this show I give you tips tricks around trading today we're going to talk about trading and taxes because many of you who are watching the show I know already making money with trading so we want to make sure we want to make sure that you know what to do then when you're making a lot of money what impact does it have on your taxes okay need to say have a sip of coffee so good to see you here and yeah randy says it so effective the interest rates are the same but banks have upped their rates yeah right now it's it's really literally supply and demand because there's many people right now looking for loans right because money is cheap and yeah surprisingly banks are jacking up their rates a little bit let's see if they can get away with it or if there's more pressure that they have to lower it again definitely super interesting Rana says it Robin Hood steal from the rich give to the poor yeah not a big fan of Robin Hood you know what I have actually done a video about Robin Hood and my opinion on it and again it's just my opinion so if you want to check it out it's here on my channel good Lindsey received a mug as well okay good very good loved it really happy perfect oh okay so let's move on let's talk about our Rob also says love my new Mac let's talk about trading in Texas here good let me actually prepare a few things because we will also record this segment here I think it is super important that you know what to expect when trading okay so doing this doing this cool alright so let's talk about trading and taxes so this is the second installment in our series trading as a business now first installment we talked about the seven things that you need to start trading so let's do a quick recap here let me bring it up on the screen so that you remember it we talked about here we go how to start a successful trading business you do need a charting software you do need a broker you do need a trading strategy a computer I recommend having a second monitor there's a few newsletters that I recommend and then of course we have to talk about trading and taxes now all of this that you see here on the screen is what we did last time so right now we want to jump in and talk about trading and taxes okay so it's actually more fun than it sounds because I know our taxes we have to pay taxes there are some really cool advantages when the IRS the IRS recognize your business as a business your trading business as a business now first of all full disclosure I am NOT an accountant and I mean no in no way qualified to give you any legal advice or or money-saving advice this is my opinion this is what I've experienced I'll give you some resources and also at the end of this session I will give you some resources where he can talk to professionals who know what they're doing any of here the advantages when you do have a business when when you're trading is recognized as a business you can deduct expenses from your trading income know what are expenses that you can deduct you can deduct expenses for your home office because you're working for some from somewhere right you can deduct expenses for education so if you have invested in education it is possible to deduct this now you can also deduct start-up expenses that you have for your business so there's a few more things that you can deduct for example you can deduct organization organization expenses and by this I mean for example the cost of forming an LLC we'll talk about it do you need an LLC or not we will talk about this here in a few but I just want to show you what all is possible when the IRS recognizes you as a business okay so then you you have so-called tangible property expense what the heck does this mean this means for example your computer which could be a let laptop your monitor and any other thing that you need for your trading business right so computer monitor is the most common here now here's the other cool thing like every other business you can actually deduct expenses of seminars and if you have to travel to these seminars travel expenses can be deductible again there's rules and regulations that are applying I am NOT a CPA please talk to your CPA or talk to the resources that I'm giving you towards the the end of this show here after we are through with the video okay what else can you deduct for example market data you know when you're signing up for example for trading view you can sign up for market data it's really not that expensive but if you're paying ten fifteen twenty sixty dollars a month depending on what market data you you're subscribing to this is definitely deductible what else stop borrowing fees so when you're shorting a stock you're borrowing a stop any broker's charging your fee now it's not a whole lot because especially right now interest rates are low so but there is a fee and you can deduct this from your income what else for example margin interest if you have a margin account and you pay interest on this again it's not a whole lot it's probably it just a few dollars but you can deduct it so as you can see there are many advantages of having a trading business so the key question here right now is what qualifies for trading business because think about it this way let's say that you're starting trading and you are not yet as profitable as you want to be or you you start drawing a small account and you're making I don't know maybe ten thousand fifteen thousand twenty thousand dollars a year and let's say that your expenses are higher that your expenses are higher than your income then you have the loss in this trading and tea when you have an entity it is on a schedule k schedule K I believe and you can actually offset this with your regular income so it's really really cool this is why I say trading and taxes it is fun if you know what you're doing and if you are recognized by the IRS as a trader so this is called having the trader tax status let's talk about this so how do you obtain the trader tax status and I'm putting this in quotation mark because this basically means okay what is needed so that the IRS recognizes you as a trader okay so there is actually a statement from the IRS I will post a link here in the document and if you want I will make this document here available for you but let me just quickly post it here so you have to obtain trader tax status oops let's see edit and match style here we go perfect so let's take a look at some of the highlights that are really really important so you see here under traders special rules apply if your trader and securities which means that you're in the business of buying and selling securities stocks or options for your own account the law the IRS law considers this to be a business even though a trader doesn't maintain an inventory and doesn't have customers however there are some rules so we to be engaged in the business as a trader of securities you must meet all all of the following conditions number one you must seek to profit from daily market movements in the price of securities and not from dividends so you have to be an active trader buying and selling dividend investors don't count your activity must be substantial and you must carry on the activity with continuity and regularity now as you can see this is as vague as it possibly get right I mean can you be any more vague so this is where the IRS gives you a clarification and in a moment I will give you a few guidelines that I found when I did some research of what is considered your trading activity be substantial because obviously this year thus far does not help us at all so this is where the IRS says well we are we're considering the following facts and circumstances when we are determining if your activity in securities is a trading business the typical holding period so obviously as a trader it should be as short as possible now for me personally for my trading I typically hold a stop or an option between five and twenty five days and there are even some times when I'm holding it less than a week so that definitely qualifies as trader I said in a moment I will give you some more guidelines but let's take a look at this the frequency or dollar amount of your trades throughout the year the extent to which you pursue the activity to produce an income or a livelihood and the amount of time you devote to the activity so as you can see there's there's a few things and this resin okay what the heck does it mean I mean this is still as big as possible so I did some research on the website and I came across one of the website it's called green tail trader tax calm it's a website maintained by Robert Greene and again he's just saying okay how to qualify for this and here are some golden rules and I want to write these down so there was a court case so there was a court case in 90 2015 so only five years ago and this court court case is being cited by many CPAs to determine whether you in the eyes of the IRS should qualify as a trading business and let's talk about all these different components that we had here let's let's break it down here and again I'll give you a resource here in a little bit where you can talk to a professional obviously I'm not a professional I'm showing you what I know about it right and this is my knowledge and place personal opinion here seek the seek the advice from a professional but let's talk about this so first of all regarding volume so regarding volume it seems that a golden rule there is 720 trades per year so let's write this down so in order to qualify for trade attack status again the RSS you must have certain amount of volume so this means 700 total trades per year or 60 per month and you might say oh my gosh I can have 60 trades per month that is a whole lot well hold on not so fast first of all here is how a trade is defined a trade is one trade is to buy a stock or an option and then another trait one trait is to sell it again so let me just here share my screen so that you see it so basically you know that every transaction consists of a buy and a sell right or the other way around so as soon as you trade it's already two trades in the eyes of the RS so this means if you're doing 60 per months it actually means that you're airing only 30 round turns now here's the other cool thing so for the IRS in this case it was determined that scaling in and out does count okay again this is my research that I've done here please do your own research but this means as an example if you buy 100 shares and then you sell later on 50 shares at a certain price and then you sell another 50 seers so this is how you're closing your position this counts as three trades so as you can see it is not that difficult to get these 60 trades per month that is here again it's guidelines please keep in mind all of this is guidelines so I'll write this down here as well these are not rules are the IRS well take a look at you but since there was a court case this based on the court case that happened in 2015 I do believe that these guidelines are pretty good okay so this is in terms of volume let's see what else is needed okay frequency so execute rates on close to four days per week okay so this here another golden rule that we want to right down so the frequency of trading four days per week now again not saying that it is super easy to obtain trader tech status but when you do as you can see you have a lot of it lots of advantages so it does make sense okay let's see what other guidelines do we have here so holding period in the court case the RS set the average holding period the average holding period must be 31 days or less okay good so we already know this holding period 31 days or less now before we continue there's a few things but let me ask you this thus far has this been helpful because if it is to me a favor and give me a quick thumbs up this way I know that this is helpful and I'll go through the rest of the guidelines here and then give you the resource we can get more information or advice from a professional I just want to make sure that I'm not boring you here in this video so if you like it thus far give me a quick thumbs up all right very cool so let's let's see what else is there again holding period of 31 days no problem for me at all because this is where I personally hold most stocks between 5 and 25 days and options I mean so we are good to go here ok so here is the other thing right I mean trades full-time or part-time so this is something which I think is a little bit of a gray area but we should definitely consider it that you are at least considered a part-time trader now here is an important thing here's one important thing where you see part-time and money losing traders face more IRS scrutiny and individuals face more scrutiny than entity traders so what does this mean right it means that you you should be profitable and it seems that having an entity and an entity means an LLC seems to be beneficial okay so based on that's what Robert Greene writes here so again ours spends more than four hours a day almost every market day on this alright well for me not so that's not a problem I love watching the market you might love watching the markets and you might actually spend four hours a day again these are guidelines keep this in mind its guidelines I will give you a resource here to professional who can help you and see what is happening in your situation but let's just say it so in terms of volume in terms of frequency in terms of holding period right in in terms of hours here you have some rough guidelines okay so the last two guidelines that we have here is okay let's actually write these down so as you can see the intention let's go back here shifting this a little bit so has intention as intention to be a full-time trader right so that's the idea I mean don't treat this as a hobby because if you treat it as a hobby then the IRS probably says well there's more or less a hobby here so that's very important the operations that's the other thing that's super super important and we talked about this yesterday so let me just copy it over here from this website from Robert greens website so operations has significant business equipment education business service and the home office what does it mean well yesterday in the first part of the video here and we'll link to the first part here in the description we talked about the six things that you need yes you should have a professional software yes you should have a professional charting software yes you should have education as you see these are the guidelines if you're jumping into the markets without any education without having any investment any significant investment done in the business they're assessed well you're probably just a hobby trader so it does make sense to invest money into your business now here's the last thing regard concise right so account size it says has a material account size and again Lord has material account size here the recommendation is yet that you have at least a fifteen thousand dollar account no what does it mean it doesn't mean that you should not trade if you have less no it simply means that if you have less than fifteen thousand dollars you probably do not qualify just yet for what they call the trader text ages now I see that there's a lot of questions I'll answer the questions here in a moment but I want to make sure that I'm also giving you a resource where you get more information so is this making sense before I give you the resource again if this helpful give me a quick thumbs up or like and then I'll show you where you get more information now obviously as you have just seen I get a lot of information from this website which is called green trader tax and green trader tax is a great company they are offering consultations one of the challenges here is or not challenges just something to be aware of when you book a consultation with robert greene or one of his associates where you can see do you qualify for trader tech status should you elect MTM accounting whatever it is can you benefit from an entity you can book it and I believe it is like two hundred and sixty-five dollars two hundred seventy dollars actually so this might be a great resource to do it however there's also another company it's called traders accounting where you can schedule a free consultation and if you're interested in scheduling a free consultation go to Rockwell trading comm slash taxes override down the link here right underneath the video so that you can just click the link when you click on Rockwell trading comm slash taxes it brings you to this website where you can have a free half-hour consultation and during these 30 minutes from get it free you will recover how an entity can save you thousands what are possible deductions trader tech status versus investor status and so on and so on now very very important as you can see in red there are a few qualifications you need to meet for the following requirements in order to sign up for a consult ready to trade out of a business in the next two to four weeks so this means that you should be close to meeting these requirements if you haven't even started trading yet don't book a consultation it doesn't benefit you at all right so but if you are already trading if you are already making money if you already have an account that is at least fifteen thousand dollars or more if you have spent significant amounts of money on education on business services on a home office on software on a computer then it does make sense so again do not apply for this free consultation really they won't like you if you're not ready and if you don't meet these quite criterias also if you already have a business don't don't ask him for a consultation they help you to get set up okay so if you have a business there's probably your existing CPA can help you with this and right now you must have either US citizenship and or u.s. residency because these guys they know their stuff here in the United States so they might not know the rules in your country wherever you're from whether you're watching us from Canada or whether they watching me from Australia from Europe from Asia from from Africa from South America from wherever over the world you are watching this right so if you are in the u.s. this is for you again go to Rockwell trading comm slash taxes that brings you automatically here to the free half-hour consultation so long story short trading and taxes can be fun again if you qualify as a trader and if you trade higher trading qualifies as a business then you can deduct a lot of expenses which is really cool and here you have the exact rules I have the link here so that he can read what it means and there are some guidelines based on a court case so if you want I will post a link here or go to while trading calm slash coffee and I'll be happy to send you this document here the team is probably printing it up and making it into a PDF and then we'll send you the document whenever is ready ok hope this helps if you found this video helpful there's a few other videos popping up on the screen right now just click on any of these videos that you like best and I'll see you in the next video alright good so we got this out of the way this will be a standalone video hopefully it was only ten minutes ten fifteen minutes that's hopefully the sweet spot and I see that there are a lot of questions and I'll see if I can answer to as through as many questions here as possible so let's see so I want to make sure that we're talking mainly right now about trading and taxes so there are a few questions Jackie's asking can you explain your trading strategy using technical indicators I'll be happy to in fact the easiest way to do this is to get my book the power x strategy this where I wrote down all the rules including for trading options so it's for trading stocks and options on Amazon it is $25 but I'll be happy to send you a free copy if you want all I ask is that you cover shipping and handling which is $4.95 so if you would like to have a copy there's a link right underneath the video where you can click on it just look for power x strategy book and I'll be happy to send you a copy for $4.95 that is probably the easiest way to learn about my strategy and also the least expensive way here okay so Luis is asking what if you are trading under a self-directed IRA okay that is a great question I'm going to jump back on the screen here in just a moment because it seems that hold on let me just make sure that I'm going back to where I was so I'm going back to to Robert Greene's website so this is where I did my my research because here's also what doesn't qualify so what does not qualify is trading automated trading systems unless you have developed them so if you didn't develop the auto trading system if you bought a robot that does not count trade copying services do not count this means if somebody is sending you a trade if somebody is sending you a newsletter and say buy this stock at this price that is considered a trade copying service and does not qualify now on the other hand if you're getting a software like the power X optimizer and you're getting eight choices a day and then you make a decision which of these stocks you want to trade that is not a trade copying service this by the way people ask me all the time do you offer trade copying service as you know we do have a newsletter it's called the power alerts where we issued trades but if you only if you only follow the power alerts then you will not qualify for trade or tax status because that is considered trading copying now obviously engaging a money manager so if you if you hire somebody to manage your money you cannot qualify for trade or tech stages and here's the other thing trading retirement funds right so again talk to a professional go to rockville trading comm slash taxes talk to the professionals there when you are ready and they can tell you this i believe a self-directed IRA might count again based on my personal opinion but but again talk to a professional but that is a really really good question okay so um [Music] doc says let me let me just see if I can if I can bring some questions here on the screen and oh by the way before we continue here because there's some great questions about selling shares how many dollars of tax deduction per year for everything I want to do this but I also see that there's a lot of great feedback and I know that several of you left some feedback on on Google I left some feedback on site lever left some feedback on the Better Business Bureau on Yelp and really appreciate this and you know it's part of the show that I want to recognize you so if you see your name on the screen here please send your mailing address to Nicole at Rockwell trading calm because I want to send you as a small thank you for taking the time to share your experience so Tim ROM Jodie Stephen just taking a quick sip if you see your name here Stephen left a review on Google and Trustpilot really appreciated od vo mesh let's see and - - yawns okay you get the idea Barry I really appreciated contact Nicole at Rockwell trading comm tell her your mailing address and I'll send you a small thank you in the mail so Todd appreciated Zeke you guys are awesome so please contact Nicole at Rockville trading calm right now you see it here and Center your mailing address and I'll be happy to send you a small thank you I appreciate it okay Eddie oh so we got this out of the way and if you would like to have today's show notes as well as the PDF that I've been talking about go to rippletraining.com slash coffee leave here leave your name and email address we'll send you reminders whenever I go live and as soon as the team has made it into a nice PDF my chicken scratch here we will include it and we'll send it out to you so expect an email in the next couple of days so just go to Rockwell trading calm slash coffee okay so let's see duck says so selling a thousand shares of position took six transactions today that's ten percent of the monthly requirement what I'd consider in one trade but seems that the IRS considers it six so here's the deal if these are duck evie these are split fills if these are split fills I don't think that they're count this would count as one trade however let's say you bought a thousand shares of Tesla at six hundred dollars right and you know right now Tesla is trading above a thousand dollars so let's say you sold two hundred shares one Tesla was trading at seven hundred dollars you sold and not 200 shares so this is right now three transactions by a thousand sell 200 so 200 when Tesla was at eight hundred shares then you sold another 200 when Tesla was trading at $900 and then you sold the remainder today when it was trading at $1,000 so this would qualify even though you would count it as one trade but for the IRS at what count as five trades now again I do believe that split fields meaning that you say I want to sell a thousand shares right now and your broker says well we have to split it up into two hundred two hundred three hundred and it's all happening on the same day I do believe that this counts as one trade but again I'm not the expert this is why go to Rockwell trading comm slash taxes or go to our robber greens website at green trader tax calm they're great resources they might help you with this but that's a great question okay so um David is asking how many dollars offer texted action per year on average ten thousand twenty thousand or more is it really worth it well think about this how much money are you investing in your trading business right so I don't know what kind of home office you have how luxurious your home office is I don't know how much money you invest in in trading education I I know that you're part of our mastermind so I mean the mastermind is considered trading education and I know that you invested a substantial amount there when you purchase the software the Powerex optimizer right so just think about it this way all of this adds up and also when you are in an entity it is not counted as regular income it is counted as income from a business which I mean you know the rules and regulations better on this is text differently so you're being taxed as a business so it really depends and this is why I hate to say oh yeah you will easily save ten thousand dollars but usually if you're taking your trading business seriously and if you have substantial investments in software in education in travel right whatever it might be in computers in monitors in equipment in subscriptions then it definitely makes sense usually I mean rule of thumb rule of thumb in order to form an entity and and talk to a professional who can help you with this it'll probably cost you anywhere between a thousand to fifteen hundred dollars rule of thumb again subject to change your situation might be different but think about it this way and I do believe that you can save at least a thousand to fifteen hundred dollars by having a business also when you're keeping a trading lock you'll be fine in terms of record-keeping so I believe my personal opinion if you take your trading seriously it makes sense to at least talk to a professional about this anyhow great question here Tristan yeah very good topic I know that many of you asked about it so I wanted to make sure that that I'm doing it and Monica says if you're trading an ionica IRA account none of these things apply Monica you see this the point I mean if you're trading an IRA IRA account you're already trading tax-free you already have substantial tax benefits right and this is where the IRS says you cannot double-dip which i think is fair enough so this were Monica it really makes sense to talk to a professional to see if in your particular situation it makes more sense to keep trading in a retirement account or to convert this into possibly a self-directed or maybe take it out of the Erica retirement account take the penalty and then save money I mean there's so many nuances so I wouldn't make this as a general statement yes you're right when you're in a retirement account you cannot save taxes twice you already have txt benefits here but good good comment here so talk to a professional whether it makes sense for you or not so Roger is asking our loss is deductible well here's how your income is derived when trading is a business you make money and you lose money right and your net profits your net profit so therefore yes losses are deductible now again losses from trading not from investing remember the difference IRS clearly Siddhant says trading is 31 days or less investing is 31 days or more so Raja if you have losses from active trading for example if you have taken a position last week and you realize the loss today that of course is deductible from your income which is your profitable trade so you do have profitable trades and you do have losing trades right and when you have losing trades then you can deduct this from the profitable trades and again it has to be trades meaning 31 days or less good good good summer summarize asking other Powerex alerts still available for subscriptions it is power alerts it is slightly different do me a favor contact the office they can explain the difference to you of what that is so the power alerts are not based they are not based on the Forex strategy they're different for the park strategy you have the software the Powerex optimizer but feel free to contact the office or email them at support at Rockwell trading calm and they can help you out okay good let's see so I know that there's a few more questions that I want to answer here one of them is should buying education be in the same tax year you see I mean you saw the you saw the criteria right so the idea is that you plan to really make money with this business and invest substantial amounts so it should be I think a rule of thumb is for up to 12 months after you start your your trading business or after you invest in your education you have I believe I believe up to 12 months right to really start it so if you invest in education today I don't necessarily think that you have to start your trading business this year I believe and again my opinion that you can start it next year and then your trading education would be considered startup expense but again go to Rockwell trading comm slash taxes talk to the guys at traders accounting go to green trader tax if you want pay for a consultation there it's $270 it's probably money well-spent and if you go to Rockwell trading comm slash taxes you can qualify for a free consultation if you meet the criteria that I mentioned earlier okay so great question teat right now says how is the wash sale rule IRS effect day traders there are also rules and usually it's more beneficial again this were you find more information there I'm not that familiar I do have an entity for my trading by the way my entity call is called trade confident LLC so that's my name and it does make sense Paul is asking what about mark mark-to-market designation and riding off losses again when you are a trader important not an investor so if you have losses for investment that you did last year if let's say you bought herds last year call I can write classic example call I can invested in Hertz and now months later or years later has realized the two billion loss or something like this now again he has different tax treatments possibly right but if this is you if you would have done it you could not deduct that loss it has to be from active trading which is 31 days or less which is what I do and what I teach here Greg regret okay Jodi is asking do you know if there is an education a limit per year not that I'm aware of I have not heard about in education limit here again the rule is that you're investing substantial amounts in your business so to prove that this we talked about yesterday it's like opening a food trailer or food truck right I mean in Austin they're super popular here so if you want to open a food truck you cannot start with just a grill standing on the side of the road and in a table right and maybe selling sodas out of out of an ice chest right so you have to make some investment in the same here if you're not making any investment in your trading business the IRS is probably not recognized as a business here okay so Ray's asking how do you get a copy of the successful business plan that I you did on Monday the best thing to go is go to rockville trading comm slash coffee this is where we get your email or you can contact the office right so if you contact the office can call or text 5.2 337 185 or send an email its support or Brockville trading comm they have it for you they'll be happy to email it to you just ask and we will make sure so the idea here is right now i'm talking to my team about putting all these show notes in one place so that you have all the resources that that i'm giving you in these sessions all available in one place so they will be labeled probably that it says okay coffee with marcus where marcus talked about trading and taxes here is the supporting document here's where marcus talked about a business plan here's the supporting document so the team is currently building it give them a few more days and if you go to rockville trading comm slash coffee put your name and email on the list there I promise as soon as we have it available will email it out to you and we'll also add this to the descriptions here okay fantastic well I have to wrap up here today time flies when you're having fun right I mean this is just amazing again if this is your first time here and you enjoyed the show consider subscribing to this channel and always feel free to to share this video with anybody who you think might benefit from it so feel free to email it to other people feel free to share it on facebook if you want share share share I mean the more people know about the good stuff and the trading actually can be simple the better it is right because you always tell me how much money you're making with trading and that makes me really really happy so I'm super excited about this when you're making thousands of dollars so be a good neighbor and share it with your friends and neighbors okay yeah have a great rest of the day if you want we will meet here again on Friday at 3:30 Eastern Time I'm live they Wednesday and Fridays 3:30 Eastern Time and in between we're scheduling a lot of videos that are here on the scandal just feel free right now I mean since we're wrapping up feel free to browse this channel there's probably tons of videos that might be beneficial for you okay I'll see you very soon take care everybody

Channel: Markus Heitkoetter

Views: 6,723

Rating: 4.9636364 out of 5

Keywords: Trading Taxes, Trading Taxes EXPLAINED, stock trading taxes, stock market, swing trading taxes, stock trading, trader taxes, swing trading, how to pay taxes as a trader, trading taxes, trading forex for beginners, stock market investing tips, how do day traders pay taxes, how to qualify for trader tax status, day trading taxes irs, Markus Heitkoetter

Id: laMtU3KFzSI

Length: 46min 57sec (2817 seconds)

Published: Wed Jun 10 2020