Allstocks.com's Bulletin Board: Profit/Loss and Taxes

my profile login | register | search | faq | forum home

»	Allstocks.com's Bulletin Board » General Investing Topics » Profit/Loss and Taxes

UBBFriend: Email this page to someone!

Author

Topic: Profit/Loss and Taxes

d6veteran
Member

Member Rated:

posted

I'm trading more this year already than I did last year, and I thought of a situation that could really suck.

Let's say at the end of the year I have made $10k in profits and $10k in losses. So essentially my trading account is at the same amount I started with.

I can write off $3k in losses. But that leaves me with $7k taxable. But I am not up $7k. I only broke even. But come tax time I will pay 30% on the $7k right?

Ouch. I thought of this the other since I am so far $3k profits/ $2.5k losses (up about $500).

I don't want to slow down my trading cuz I'm learning a lot, but jeez I could be digging a big ol hole.

Anyone?

IP: Logged |

Machiavelli
Member

Rate Member

posted

www.fairmark.com

--------------------
Let the world change you... And you can change the world.

Ernesto "Che" Guevara de la Serna

IP: Logged |

d6veteran
Member

Member Rated:

posted

Are you telling me to post on their board?

If someone knows the answer or has a link *to the answer* then I would really appreciate it.

Thanks.

IP: Logged |

crappycrapper
Member

Rate Member

posted

LOL... You are correct! Call congress....

You can carrier over into the next year the loss...

IP: Logged |

Bob Frey
Member

Member Rated:

posted

Not a tax accountant but.

You can deduct your loses up to the amount of your gains plus 3k.

IP: Logged |

keithsan
Member

Member Rated:

posted

your "realized gain/loss" should be zero.
in the end, you made and lost nothing. file a schedule D have your broker give you the realized paperwork.

for schedule D you can write miscelaneous stocks etc...realized gain/loss of whatever it is and you will be taxed on that gain/loss.

IP: Logged |

d6veteran
Member

Member Rated:

posted

Thanks keithsan and Bob. I just did a test in TurboTax pro (upgraded today) and the scenario I described resulted in 0.

IP: Logged |

d6veteran
Member

Member Rated:

posted

By the way, Scottrade's paperwork is terrible. I saw the paperwork a friend gets from his E*Trade account and the trading history is much more detailed and the realized P&L is clearly listed.

IP: Logged |

keithsan
Member

Member Rated:

posted

ameritrade apex does mine free through gainskeeper, comes out nice...having trouble uploading to turbo tax but if i file with a pen it works well.

IP: Logged |

George
Member

Rate Member

posted

quote:
Originally posted by keithsan:
ameritrade apex does mine free through gainskeeper, comes out nice...having trouble uploading to turbo tax but if i file with a pen it works well.

Scottrade also has free gains keeper

--------------------
If all goes well then great, if not, make it work.

IP: Logged |

George
Member

Rate Member

posted

quote:
Originally posted by George:

quote:
Originally posted by keithsan:
ameritrade apex does mine free through gainskeeper, comes out nice...having trouble uploading to turbo tax but if i file with a pen it works well.
Scottrade also has free gainskeeper. Go to account information and you will see it on the left menu. It is a new feature and will give you everything you need to do taxs.

--------------------
If all goes well then great, if not, make it work.

IP: Logged |

jordanreed
Member

posted

I put all my paperwork in a box and give it to my tax guy

--------------------
jordan

IP: Logged |

d6veteran
Member

Member Rated:

posted

Thanks George! I found the Gainskeeper link on Scottrade. Thanks.

IP: Logged |

Printer-friendly view of this topic