How do I calculate daily trading taxes?

The amount of daily trading taxes will depend on several factors. If you are in the US, the most important factors will be your business status and the rate of capital profits applied to your stores. You can be classified as a merchant or investor and both have certain advantages and disadvantages. It is important to note that the tax rules and instructions will vary depending on the country in which you live.

There are two capital gain rates in the US that can affect daily trading taxes: a long -term capital gain rate and a short -term capital yield rate. If the shares are held for less than 12 months and achieve profit when selling, it is taxed at a short -term capital revenue rate. If stocks are held for more than 12 consecutive months and then sell for profit, a long -term capital gain should be used to calculate taxes.

Short -term capital gain rate in the US in 2009 was set at 35% regardless of tax SKUPINA individual. The long -term campaign of winter gains in the same year was between 0% and 15% depending on the annual income of the individual. Long -term trades mean lower tax rates, but if you are a daily trader, they are most likely to fall within a short -term rate for most of your stores.

Your business status will also affect the amount of daily trading taxes. If you are classified as an investor, you cannot fully deduct all costs incurred during trading, but if you are classified as a trader, you can deduct most of your costs. There are no rules set by what qualifies someone as an investor or merchant, but the use of instructions set by US courts should be useful in understanding your status.

courts consider you a merchant if you spend a lot of time trading and if your stores represent a significant biteST of your annual income. You can probably exchange part -time and still take into account, but you should trade every day. The merchant's aim is also to benefit from short -term market changes and instead of focusing on long -term investment on the market for more trades.

Keep separate business accounts long -term and short -term trades as this will make it easier to calculate daily trading taxes. There are software solutions that can download the necessary data from the brokerage platform and transfer it to your tax software.