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Frequently Asked Questions About Day Trading Taxes

Welcome to our listing of frequently asked tax questions for day trading and investing. We have studied the IRS code and trader tax court rulings for years and receive many questions from not only traders, but also other CPA and accounting firms. To provide you and our industry an additional trader tax resource we compiled a list of the most common tax questions and answers. If you don’t find your answer here, feel free to contact us. Our team is looking forward to hearing from you.

 

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Can I deduct my short-term capital loss from trading stocks and/or equity options?
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Am I limited to the $3000 capital loss deduction when trading FOREX?
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Should I trade in a legal entity such as a Corporation, LLC or trust?
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How do I opt out of Section 988 and into Section 1256 for spot FOREX?
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Are there legal strategies for tax free trading and investing?
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How are single stock futures taxed?
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What is the best strategy to lower my taxes?
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How are ETF’s such as the NASDAQ QQQQ or S&P 500 SPDRs taxed?
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How are ETF’s on specific industry or market sectors taxed?
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How do I open a brokerage account for my trading LLC?
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How do I open a brokerage account for my trading corporation?
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What happens if I didn't file an extension for my tax return?
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I missed the tax deadline, can I still make the mark-to-market election?
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Can I choose which year to use my mark-to-market election?
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I didn't make any money, do I have to file a personal tax return?
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Can I deduct the cost of trading seminars and investment education?
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How can I avoid the wash sale rule?
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Will I increase my chances of being audited if I file an amended tax return?
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I did not not trade in my corporation or LLC, do I still have to file a tax return?
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If I am considered a trader insecurities will the wash sale still apply to me?
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