when did you withdraw the $100,000? In 2023 or 2024? When did you incur these trading losses?
I'm sure you realize that the $100,000 is subject to regular income tax plus a 10% penalty, regardless of what you used the money for. You should also be aware that the income tax system is pay-as-you-go an expects you to make estimated tax payments in 4 quarterly installments, and you will be subject to an underpayment penalty unless you can pay the entire tax you owe by the filing deadline (April 15, 2025, assuming you made the withdrawal in 2024).
Even if you figure out some way to deduct the entire $50,000 trading loss, you will still owe the 10% penalty on the entire $100,000 withdrawal plus your normal income tax on whatever you can't deduct.
