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Thread: Tax Question?

  1. #1
    stang3O2 is offline
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    Joined: Nov 2008 Location: Indy/LA/chi/ny Posts: 422

    Tax Question?

    For those of you who hold a core and trade an over-core position, how do you keep the shares separate for tax benefits? I'm switching my core from scottrade to TDA because I need them to be in the same account as my over-core so I can have a pattern day trader status (if not I wont have enough account value). My plan is to hold my core for at least 1 year so I can get a lower tax rate and trade my over core along the way to try and pick up more shares

  2. #2
    john is offline
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    Joined: May 2008 Posts: 2,836
    stang, I am not an accountant but I will say first of all you can select certain lots to sell. If you dont do that all the time then you will need to take the year end statement and go over it then select what lots you bought and then sold later. A helpful hint try to sell full lots all at once because it becomes more difficult to carry forward (track) partial lots from year to year. That is just the common sense opinion with a little experience on the matter.


    P.S. Even if you have an accountant do your taxes then you will still have to do what I wasd saying because he will never know what lots went where and which ones where sold when. Also it is best if you trade alot that you keep track of it as you go of which sold lots went to which buy lots. The last thing you want is at the end of the year, trying to go over 1 or 2 thousand trades. Believe me your wife (no matter how wonderful she is) will want to kill you.

  3. #3
    stang3O2 is offline
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    Joined: Nov 2008 Location: Indy/LA/chi/ny Posts: 422
    Thanks for your help John!

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