# Day trading profit ???



## Jimmy44 (Jan 12, 2020)

I did some day trading in 2020.
I did end up making money about 15 thousand dollars.
I never took the profit out of my account but reinvested it.
I am assuming that profit is considered earned income and subject to tax.
Could someone verify this for me.


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## Uber's Guber (Oct 22, 2017)

Jimmy44 said:


> Could someone verify this for me.


Yeah, a qualified tax adviser can.


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## Jimmy44 (Jan 12, 2020)

Uber's Guber said:


> Yeah, a qualified tax adviser can.


Thanks Guber !
Don't work to hard at the filling station &#128526;



Jimmy44 said:


> Thanks Guber !
> Don't work to hard at the filling station &#128526;


Part of my earnings were A earnings and part B 
Anyone know what the difference is ?
The A earnings was reported to the IRS and B earnings were not.


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## SHalester (Aug 25, 2019)

Jimmy44 said:


> I am assuming that profit is considered earned income and subject to tax.


if you realized the profit, it is taxable. Reinvesting is not relevant to the IRS.


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## wallae (Jun 11, 2018)

Jimmy44 said:


> I did some day trading in 2020.
> I did end up making money about 15 thousand dollars.
> I never took the profit out of my account but reinvested it.
> I am assuming that profit is considered earned income and subject to tax.
> Could someone verify this for me.





Jimmy44 said:


> I did some day trading in 2020.
> I did end up making money about 15 thousand dollars.
> I never took the profit out of my account but reinvested it.
> I am assuming that profit is considered earned income and subject to tax.
> Could someone verify this for me.


I trade a lot
The broker reports sales of stock to the irs
In my case it's 100,000- 200,000 or so
If I don't report the other end, the buy cost, they assume you made 100,000
You have to do something
I use TurboTax self employed pro
I log into that
Select my brokerage
Plug in my account number
Plug in tax document id number
It just does it
Sometimes if I only sold half of position and then the other half later I may have to plug-in a number to



Uber's Guber said:


> Yeah, a qualified tax adviser can.


Hey... we have 60 therapists here
no reason to think there aren't 27 tax advisers too



Jimmy44 said:


> I did some day trading in 2020.
> I did end up making money about 15 thousand dollars.
> I never took the profit out of my account but reinvested it.
> I am assuming that profit is considered earned income and subject to tax.
> Could someone verify this for me.


Back to you
I have heard that the IRS really doesn't bother with you anymore&#129315;


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## joebo1963 (Dec 21, 2016)

You should have received a 1099 and a gain/ loss report 

net proceeds and cost Your gain will be clearly visible.


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## Jimmy44 (Jan 12, 2020)

Jimmy44 said:


> Thanks Guber !
> Don't work to hard at the filling station &#128526;


Part of my earnings were A earnings and part B
Anyone know what the difference is ?
The A earnings was reported to the IRS and B earnings were not.


joebo1963 said:


> You should have received a 1099 and a gain/ loss report
> 
> net proceeds and cost Your gain will be clearly visible.


So it's considered capital gain rather then earned income ?
So the tax rate is whatever mine is for 2020 ?


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## Older Chauffeur (Oct 16, 2014)

Jimmy44 said:


> So it's considered capital gain rather then earned income ?


I think day trading on your own account would not be considered employment, so the income would be unearned.
If you held a stock for less than a year, it's taxed the same as earned income. For stocks held over a year it's 15 or 20%. I googled it. But I suggest you either consult a tax professional, or use a tax prep program and plug in the numbers from your 1099s. BTW, brokerages are sometimes slow getting the tax documents out. I'm still waiting on "final versions" from mine, which they tell me should be available March 15.


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## Jimmy44 (Jan 12, 2020)

Older Chauffeur said:


> I think day trading on your own account would not be considered employment, so the income would be unearned.


Thanks it's appreciated


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## Older Chauffeur (Oct 16, 2014)

Jimmy44 said:


> Thanks it's appreciated


I added to my first post after you read the first line. Also, I found references to 1099div and 1099B, but no A. (Warren Buffet's Berkshire Hathaway has A and B shares, but I don't think that's what you're dealing with &#129300;&#128516
The 1099div refers to any dividends paid to you while you held a stock, while the 1099B is profit from trading.
This is my understanding, but I'm not a tax professional. However, @UberTaxPro is, so you could pm him.


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## mbd (Aug 27, 2018)

Jimmy44 said:


> Thanks it's appreciated


Short term cap gains is added to you ordinary income ... one plus year holding taxed at 20% at the most for 2020.


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## SHalester (Aug 25, 2019)

A *qualified dividend* is taxed at the capital gains tax rate, while *ordinary dividends* are taxed at standard federal income tax rates. *Qualified dividends* must meet special requirements put in place by the *IRS

and all investment income is 'unearned income'. *


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## Jimmy44 (Jan 12, 2020)

Older Chauffeur said:


> I added to my first post after you read the first line. Also, I found references to 1099div and 1099B, but no A. (Warren Buffet's Berkshire Hathaway has A and B shares, but I don't think that's what you're dealing with &#129300;&#128516
> The 1099div refers to any dividends paid to you while you held a stock, while the 1099B is profit from trading.
> This is my understanding, but I'm not a tax professional. However, @UberTaxPro is, so you could pm him.


I think if you hold a stock for a year and


mbd said:


> Short term cap gains is added to you ordinary income ... one plus year holding taxed at 20% at the most for 2020.


That makes sense



Older Chauffeur said:


> I added to my first post after you read the first line. Also, I found references to 1099div and 1099B, but no A. (Warren Buffet's Berkshire Hathaway has A and B shares, but I don't think that's what you're dealing with &#129300;&#128516
> The 1099div refers to any dividends paid to you while you held a stock, while the 1099B is profit from trading.
> This is my understanding, but I'm not a tax professional. However, @UberTaxPro is, so you could pm him.


Yea Warren bought huge stake in Chevron Feb. 19th and it's gone through the roof. I think he bought it at 85 and it closed today at 110


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## mbd (Aug 27, 2018)

Jimmy44 said:


> I think if you hold a stock for a year and
> 
> That makes sense
> 
> ...


All the Energy stocks have gone up , I sold some of the XLE ETF last week.... &#128513;


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## Jimmy44 (Jan 12, 2020)

mbd said:


> All the Energy stocks have gone up , I sold some of the XLE ETF last week.... &#128513;


Yes XOM , PSX and CVX all have rallied especially after the OPEC meeting.
I think the oil sector rally still has legs.
I will check out XLE thanks for the tip.
Gold and Silver also had a good day GLD and SLV


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## UberEunuch (Jan 14, 2020)

Lets make it simple.


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## mbd (Aug 27, 2018)

Jimmy44 said:


> Yes XOM , PSX and CVX all have rallied especially after the OPEC meeting.
> I think the oil sector rally still has legs.
> I will check out XLE thanks for the tip.
> Gold and Silver also had a good day GLD and SLV


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## Jimmy44 (Jan 12, 2020)

UberEunuch said:


> Lets make it simple.


Perfect !!!!
Thanks !!!



mbd said:


>


Interesting


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## Jimmy44 (Jan 12, 2020)

MeefAnol said:


> Yes, day trading pays off well, but you can connect a bot that will do it at night while you sleep.


Will look into that.
Thanks !


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## BestInDaWest (Apr 8, 2021)

another thread not appropriate for this site


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## kingcorey321 (May 20, 2018)

Call your broker ?
Yes places i have dealings with do report to the irs. Yes you earned profit . Yes they will give you a win loss whatever paper . Yes you must pay some tax. WWW.oanda.com . Does not give 1099s. Pro tip. You can earn 10 million no taxes due .


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## Gone_in_60_seconds (Jan 21, 2018)

Jimmy44 said:


> I did some day trading in 2020.
> I did end up making money about 15 thousand dollars.
> I never took the profit out of my account but reinvested it.
> I am assuming that profit is considered earned income and subject to tax.
> Could someone verify this for me.


Capital gains are not incurred until you sell the stocks. However, if the stocks have paid dividends those have to be reported to the IRS.


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## Jimmy44 (Jan 12, 2020)

cariherb said:


> Perhaps you should look into the taxable income, because as far as I know, you are required to provide a check about how much money you were able to get. But you are not required to pay tax if the amount of your winnings does not exceed a certain limit. Does anyone know about taxable and non-taxable income?


There is also short and long-term earnings.
The difference in taxes are incredible.


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## Jimmy44 (Jan 12, 2020)

Gone_in_60_seconds said:


> Capital gains are not incurred until you sell the stocks. However, if the stocks have paid dividends those have to be reported to the IRS.


Thank you that is very good information.
The dividends are not combined with loses.


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## Jimmy44 (Jan 12, 2020)

Sollomun said:


> Brokers have income from each transaction made between a buyer and a seller.


I use TD America and just show there records to my accountant


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