Is day trading your dream career? If so, you know that the taxes you pay can really add up. But don't worry. There's a tax break for American day traders that you may be eligible for!
In this video, we're going to show you how to qualify for the trader tax status and save thousands on your taxes. This tax break is available to American traders only and who who make qualifying income from their stock and crypto trading activities. If you're wondering if you qualify, be sure to watch this video to find out!
In this video, we're going to show you how to qualify for the trader tax status and save thousands on your taxes. This tax break is available to American traders only and who who make qualifying income from their stock and crypto trading activities. If you're wondering if you qualify, be sure to watch this video to find out!
What is Trader Tax status and how do you qualify? We've tried to simplify it within our firm. We run them through something called the Behave Test and so B stands for business expenses. Are your expenses reasonable and necessary E stands for equipment a lot of times Traders Trade from a laptop, cell phone, multiple multiple monitors H stands for the hours in the market. You got to have at least four hours in the market.
A stands for average holding periods. Your holding periods of the stocks that you're holding should not exceed 31 days. The V stands for volume. So the volume of your trades needs to be at least 720.
The extent at which you trade. You got to have a trade on at least 75 percent of open market days. So the stock market is open 252 days on the year, so 75 percent of that would be 189.. If you meet all those criteria, you're basically there in qualifying as A Trader.
Is this US only or Canada too?
whats the tax rate? volume of 720? whats if its large cap stock? 720 volume per month? per day?
More information on this topic would be awesome!