Can losses be claimed against other income? We treat short term gains at our tax rate.......can short term losses be treated similarly. Do we have to be licensed to prove our profesion if we can?
2007-02-10 10:04:19 · 4 answers · asked by RTC 1 in Business & Finance ➔ Taxes ➔ United States
The IRS treats you like anyone else -- you make money, you pay taxes.
Short term losses can only be claimed against short term gains.
You don't need to be licensed to trade with your own funds. (And you damn well better be licensed if you trade with anyone else's funds!)
2007-02-10 10:13:16 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If you are a day trader who trades only for your own account, your trades will still go on Schedule D and your net profit or loss from Schedule D will still carry over to the Form 1040. Gains are fully taxable and losses are limited to $3,000 per year.
The only difference between a day trader and a casual trader is that day traders can deduct, on Schedule C, their ordinary and necessary business expenses, such as the business use percentage of internet fees, home office expenses if qualified, etc.
2007-02-10 12:21:13 · answer #2 · answered by figment_usa 5 · 0⤊ 0⤋
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2016-02-15 15:57:50 · answer #3 · answered by Paola 3 · 0⤊ 0⤋
Gains against losses - what do you think you are doing - sitting in a casino gambling. ?
What you make is taxable - day traders are no special breed when it comes to the IRS.
2007-02-10 10:19:18 · answer #4 · answered by John W 3 · 0⤊ 0⤋