Any Tax Professionals On Here?

cotyp

cotyp

91 cherokee
Joined
Dec 5, 2012
Location
lincolnton
I had a couple questions regarding filing taxes next year. I was wanting to invest some money and i would like to know what I am getting myself into on the tax side. It wouldn't be a bunch of questions i just need to know some basics.

Thanks for any help.
 
My wife is studying to to acquire her CPA.

Pose your question, I'll show her. Maybe she can help
 
I was thinking about doing stock/cryptocurrency trading. I had been dabbling into them for a month or so, and my plan was to do weekly trade. My question is with making short term trades how would i go about doing the taxes for the trading? Would i just need to keep up with purchasing and selling values for calculating gains/ losses at the end of the year or would there be a lot more involved in how much i would owe? With my college schedule so crazy i wouldn't be working a regular job for income just using savings to try to pull small profits from 5% to 10% jumps.

Thanks for any help.
 
Good way to make a little money. Better way to lose a lot of money. Investment is for the long haul, unless you are able to devote a heck of a lot of time, effort, and education to it.

I got a couple of friends that day trade and one that is mostly into currency trading. 12+ hours every day just to stay on top of everything.

If it was that easy, everybody would be doing it. And rich.

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kaiser715 said:
If it was that easy, everybody would be doing it. And rich.

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Yeah I have seen how hard it is and some of the volatility of it since i have been watching. Im not wanting to dive right in i am going to try to work my way in and learn it in my free time for a couple months.
 
Hi, this is Jeff's wife, Rita. To the best of my knowledge, the company or the broker through which you trade will send you a Form 1099, listing all your transactions throughout the year, capital gain and losses. If it's short-term trading, usually under 2 months, than the income will be taxed at your ordinary tax rate, depending on what tax bracket you are in. If it's long-term and eligible capital gain (the U.S. company), than it will be taxed at a lower rate - 0%, 10%, or 15%, depending on your tax bracket. However, next year there might be some changes because of the Trump's tax law.
You will know how much taxes you owe when you file the tax return.
I do some investing through Schwab; they send me Form 1099 every year. Then I do the taxes with TurboTax.
 
I'm pretty sure none of the crypto-exchanges are going to be sending out 1099's. Especially since many of them are not US based and the whole concept of many of these crypto currencies is to operate outside of established laws and norms, and skirt taxes and regulations.
 
I'm not a tax expert but I've been burned hard by investment gains in the past. Coinbase has your banking info and SSN and absolutely does report to the IRS.
Anything you hold less than a year--pretty much any day trading gains--are taxed at your ordinary income rate. Any of the trading vehicles you use will have your SSN and they also report it to the IRS.

That being said, kaiser is right. at the end of the year you won't have made a dime day trading so it really doesn't matter.
 
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The program i have been messing with will send you a 1099 if you hit so much money moveing throught your account.


braxton357 said:
That being said, kaiser is right. at the end of the year you won't have made a dime day trading so it really doesn't matter.
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Thanks for the reply. But the "won't have made a dime" is just an opinion, with the right knowledge there is money to be made you just have to educate yourself on alot.
 
Jeff B said:
Hi, this is Jeff's wife, Rita. To the best of my knowledge, the company or the broker through which you trade will send you a Form 1099, listing all your transactions throughout the year, capital gain and losses. If it's short-term trading, usually under 2 months, than the income will be taxed at your ordinary tax rate, depending on what tax bracket you are in. If it's long-term and eligible capital gain (the U.S. company), than it will be taxed at a lower rate - 0%, 10%, or 15%, depending on your tax bracket. However, next year there might be some changes because of the Trump's tax law.
You will know how much taxes you owe when you file the tax return.
I do some investing through Schwab; they send me Form 1099 every year. Then I do the taxes with TurboTax.
Click to expand...

Thanks for the help, it gets me pointed in the right direction knowing what to expect (if i do get into trading).
 
braxton357 said:
That being said, kaiser is right. at the end of the year you won't have made a dime day trading so it really doesn't matter.
Click to expand...

What I was saying is that there is a much better chance of not making much (i.e. as much s even a simple index fund) without a heck of a lot of education, time, and some luck.

Folks i know doing day trading are playing with a heck of lot of money....3+ mill. Great way to generate income, bad way to grow a small portfolio.



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