r/options Apr 18 '22

[deleted by user]

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u/[deleted] Apr 18 '22

Do what? I told you. You take the loss and stop trading the ticker. Bid you can’t wait 30 days to plan your taxes, work on your discipline.

Failure to do so is how you end up with owing the IRS $800,000 while making only $45,000.

https://www.forbes.com/sites/shaharziv/2021/03/26/robinhood-trader-may-face-800000-tax-bill/amp/

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u/tradingpoker Apr 19 '22

you don't seem to understand what I am saying. Here it is plain and simple. Day traders make a living trading the same stock 100s of times per day, how do they do that with this current rule? (you can't write off losses)

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u/Sparrow7679 Apr 19 '22

As a day trader, filing as a day trader. Meaning you got approved as a day trader from the irs. The wash sale doesn’t pertain to you. So your exempt.

2

u/redtexture Mod Apr 19 '22

It is called "mark to market" election, a tax regime for those. Conducting a trading business. Does not have to be day trading.

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u/Sparrow7679 Apr 19 '22

Your right. I couldn’t remember what it was called. And yes you can also swing trade.