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Day traders who didn't lose money on their trades are taxed at normal income tax rates, or the same rate that a short-term capital gain would be taxed. One thing to note is that day traders are sometimes subjected to the wash-sale rule because they trade the same stock over and over again. This rule means that a trader must delay their tax loss on a losing trade if they bought the same stock again within 30 days of the sale. See for further information: http://en.wikipedia.org/wiki/Wash_sale

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Q: How are day traders taxed?
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Related questions

How are professional day traders taxed?

Short term gains are taxed as income, while long term gains are taxed as capital gains. Also you can right down losses and commissions that come with trading. I'm not certain on when a position is considered a "long term" investment, but I'm sure you can find it out there.


What are some popular day trading systems?

Day trading is where you would buy, trade or sell financial instruments in the same day, Traders who participate in this are called 'day traders' or 'active traders.' Also, the traders who trade and aim to profit are called 'speculators.'


How many day traders in US?

There is no exact number of day traders in the US as this group is not consistently tracked by any specific organization. Estimates vary widely, but it is believed that there are tens of thousands of active day traders in the US.


Do day traders pay state taxes on their earnings?

If the state has income tax, the day traders will pay state income taxes on their earnings.


How many day traders are there?

Too many! For every 100 day traders, only about 15 percent make it successfully. It's all about who you know and how you learn.


How is futures trading taxed?

Futures trading is taxed as either capital gains or ordinary income, depending on how long the futures contract is held. Short-term gains are taxed at ordinary income rates, while long-term gains are taxed at capital gains rates. Additionally, futures traders may be subject to the 60/40 rule, which allows 60 of gains to be taxed at the lower long-term capital gains rate and 40 at the higher short-term rate.


What is the Common day Item taxed by the French government?

I think the answer is salt


Was the negro slave trade taxed?

Probably Yes, the traders paid taxes Indirectly and Directly. Tax is there for ages though wasn't modernised as one could perceive and see it currently.


What is a common day item taxed by the French government?

it is the bread.


What percentage of day traders make money?

Only about 15 to 20 percent.


Why is there a giant spike in volume at the end of the trading day?

A lot of investores close their positions at the end of the day, especially day traders. From: www.dowteq.com


How does Day trading contribute to increased liquidity in the market?

Because day traders sell and buy in the same day so it increases the volume.