Insider’s Guide to Options Trading Taxes, Part 1
For years, I've had members ask me about options trading taxes, ways to reduce your taxes, the best legal structures, international trading taxes and hundreds of other questions on the subject.
Recently I decided to survey just our PRO and ELITE members to find out what questions they wanted specifically answered when it came to trading taxes. What were the hot-button issues they had and subsequently never found an answer to?
After hundreds of responses I compiled a long list of questions I would get answered for you...
Today we're releasing Part 1 of a three-part series all about options trading taxes. And to help facilitate the discussion we've invited CPA Brandon Hall on the show who specializes in securities taxation to get professional answers.
Once we are done with this mini-series we'll also be compiling and releasing a guide on trading taxes to our members. Plus, if you have any follow-up questions you'd like Brandon to answer or be included in our next show, please add them to the comment section below.
In Today's Show, You'll Learn About:
- Is education and training subscriptions, such as Options Alpha, tax deduction?
- What's the difference between a trader and investor?
- What are the benefits of being classified as a trader?
- Where and what can you deduct expenses related to your trading activity?
- Can you explain what a “wash sale” is for trading purposes and how losses are realized?
- How are options gains and short term realized stock gains taxed compared to ordinary income?
- Would it be advantageous to start an LLC and trade in a brokerage account registered under the LLC?
- Which corporate structure bests suits the individual options trader allowing for us to keep maximum profits?
- Does the government require brokerages to send out tax documents by a specific date as it does for W-4 statements?
- Are there any implications of option trading profits on Alternative Minimum Tax (AMT) calculations?
- What are some of the things most traders overlook that they could deduct on their taxes each year?
- Any there any other strategies we can use to reduce our tax exposure?