Ep 145: Tax Basics and Tips for Stock Market Traders & Investors

this is a very nice trading strategy sir… and it works on all time frames….

can a day trader file as an s-corp?

You forgot to tell people that if you owe more than a 1,000 dollars to the IRS at the end of the year you will be penalized by the IRS. So, if you start trading and making a decent amount of money you have to send the IRS 20% on what you made every quarter because taxes are not being taken out and the IRS doesn't want to wait till the end of the year to get piece of your pie.

Thank you !

thank you for this extremely helpful video. i learned a lot!

Great Video. Thank you Sasha!

Yes that's fine

This is fantastic information. I want to hear more about writing off losing trades: beyond the Wash Rule.

Hi, i'm not from USA but my question is:
Are all this taxes which you mentioned (div. tax, gain tax…) are automatically taken via the brokerage firm during the whole trading or investing period or you personally file the IRS tax forms every each quarter or annual depend on you laws , or the brokerage firms take only part of the taxes and you have to declare the rest to IRS? Thanks in advance

Hello Sasha, would these rules apply for a Canadian trader as well, or it just US based? Great video btw

Like your say " Don't worry about taxes, the more taxes you pay means the more money you make"! That's the mentality we should all have.

Thanks for your true honesty in teaching us, Sasha.

Sasha I have question how do I invest in a Company before It goes public?

I have a question? What does it means when you have these on summary short term gains or losses report on form 8949 that I received on robinhood 1099.

Proceeds: $956,527.29
Cost basis: $973,999.17
wash sale loss disallowed: $19,591
Realized Gain or (loss): ($17,471.88)

It means i have $17,471.88 loss? it's that correct?
thanks

So. I'm looking into day trading cryptocurrencies. Would it be wisest to start a savings account associated with the account I'll be cashing out into, and transferring all of my gains into that separate savings account so that I can easily claim it on my taxes at the end of the year? Just leave the money sitting there all year, and wait until after I've filed taxes for the year to pull it out and use it?

you should mention if you swing trade on your traditional ira account, you won't be paying any taxes on your profit on any year you make a profit until your 59.5 year old. That's when you will withdraw your money and your tax bracket will be based on the amount you take out from your ira account if that is only your income when you withdraw at 59.5.

Also , does dividend capture really work ?? A lot of people put up videos talking about this ??

Thanks for the quick response Sasha. Another question: If I buy a stock before the ex-dividend date how long do I have to hold it to get the dividend ??

So for a swing trader in a taxable account which accounting method is best FIFO, LIFO , or some other method ???

I learned some great stuff just now thanks bro 🙂

If you buy 40 dollars and sell at 30 at the loss and use the left over money to buy another stock under 30 days does that still apply or only if it's the same stock???

nice, I just go ahead and pu the tax code and read and study it from front to back, and who knows what I can find in there myself

What about dividend reinvestment ? How does the taxes work on that ?

Keep up the great content and insight, no matter what people say (Y) Greetings from Switzerland

Great Video bro

Thank you for the info. I have been trying to learn to day trade using Robinhood because of the no commissions thing. Been doing it for about a year. But after watching this video I'm scared I've screwed a lot of things up. I've made hundreds of trades, sometimes in and out of the same stocks. My taxes are going to be a mess! 🙁

where would a swing trader fall into, I can hold a trade for a few days to weeks at most

Thank you for the knowledge, and for you time on educating us. ??

I didn't know about the 1256 rule. Thanks for the info.

Thank you so much! Finally a tax video that makes sense!

Good stuff, thanks Sasha !

Great video Sasha! Most people won't get near this topic because it is so specific to each person. This was very well put together to get someone working in the right path to figuring out these issues. Side Note: I got hit with a wash sale even though I made money on the trade. This is because of the first in first out rule. I built a position over time and lowered my avg. I then sold for a profit and bought back in minutes later at a better entry price. While learning I inadvertently did this twice on the same ticker. I got hit with a wash sale even though I made profit because my first "batch" of shares were at higher value than the value I sold at even though overall average was lower. An important note that many will learn by accident. Closing out a trade on a profit does not always mean you won't hit a wash sale getting back into the same ticker. All at the same time this raised my positions cost basis from 2.07 a share to 2.30 a share. I am still wrapping my head around that part as I continue my education about this. Thought I would share. Thanks again for a great video and informational starting point.

Good stuff, thanks

great stuff mr.evdakov.. thx for sharing and creating informative content, knowing tax structures is integral for current and potential traders.

This is what I been waiting on! Thanks Great info

Thanks for this. Can you recommend a good but cheap account? My trading account is only 1k so that's where I'm at.

Great Topic, I was looking forward to learning about taxes so we as a traders could profit even more.

You should warn your listeners about the special taxes on commodity and volatility ETFs, which apply even in an IRA. For example, the gains on the gold ETF, GLD are subject to this tax, but the gains on the gold miners ETF, GDX are not. Also any options traded on these funds don't seem to be subject to these taxes. I learned this the hard way from my tax accountant.

Thanks for the great video! I do all of my trading in an IRA brokerage account. I assume that rules like 429 and 1256 don't apply in an IRA, and that there's no difference between long and short term gains. Am I right?

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