stock trading wash rule
stock trading wash rule
Question as a beginning day trader on the wash sale rule?
I just started trading day in May 2009, I have never taken mark-to-election acounting market. Is there any way I could avoid the wash sale rule, when I make my report of income tax on 15 April 2010? (If not, then If my winning gains from trade is $ 1000 and lost in the loss of jobs is $ 900, I will be taxed at $ 1000 and lose more of my tax benefit?) PSI I am planning to trade stocks over and over, so do not negotiate a guarantee given for 60 days is not an option …
You can not avoid wash sale rule unless you decide to become a securities dealer. You will always be charged at the net profit or loss. So your tax will be only profits. But keep in mind that as the transition from 2009 to 2010, the wash sale rule does not disappear. Thus, with its pattern of trade project, the transactions in January 2010 may affect the base of operations in December 2009. Thus, the taxable gain or loss can not be what it seems on the surface. I recommend you get a good program to monitor its trading, as the Gainskeeper. That will do their own taxes with a program like Turbo Tax. O your tax return done by a tax professional reputation.
