In order file/claim trader status one needs to show Volume, frequency, holding periods and money at risk.
I have 1099 gain and losses. Lets say right now I am $10k long term and $10k short term gains.
But I also have 1256 gains. 1256 gains split into 60/40. Lets say I have total gain of $20K via 1256 contracts , which will split as $12k long term and $8K short term gain.
Now total gain is
$22K long term
$18K short term
Here is situation, I have few Unrealized losses from 1099 which I am thinking about realizing it this year. Let say I have short term 1099 losses of $18 K. This will result in only $22K long term gain.
Sch D shows long term and short gain from 1099 and from Form 6781 and will show losses are coming from 1099 trades.
Q: Would it effect my tax filing as TTS (I have about 1500 trades for this year)?
Q: Traders have losses, but do I have show short term gains to qualify as Trader (trading is short term buy/sell activity)?
I have some income from Dividends and Capital gain distributions as well and there is no other income.
Dividend, distribution and short term gains are taxed at ordinary tax rate.
I looked online for year 2023 threshold is $44625. So If my overall income (from Dividend, distribution, and short term gain) is less than $44625 then what will be tax rate from my long term gains.
Q: For long term gain tax rate 0% (0 -44625) , 15% ($44626 -492300) or 20% (> 492300) rate. Is your income threshold or capital gain amounts are taxed at those rates?
Let put it other words
Lets say my Dividend, interest, distribution, short term gain is Less than $44625
But long term gain is $50K.
Q: How it will be taxed?
Q: Would it effect my TTS? I am claiming to be a trader most of income is coming from passive activity and long term gains? or at least keep some of short term gains and realize those losses next year?
