Hello,
These days have been great days for the markets, and I have a following question.
Today, I executed my day trading, I am wondering tax implications here (for the sake of simplicity, following example would describe today's day trading most accurately.
PYPL 300C 8/20 bought at 10.8, Sold at 11.5, then during mid day push back, I bought it again at 10.7, and then it went down to 10.0, I believe, and I bought it at 10.0 (or maybe I was a little bit lucky to get the least pricing). Then When it hits back to 10.3, I sold back to lock the profits and to give me some buffer zones, and then before today's closing, I sold it back at 12.0
So basically, it was
BUY SOLD = net profits
10.8 11.5 = +0.7
10.7 10.3 = -0.4
10.0 12.0 = 2.0
My cost basis would be (buy) 10.8+10.7+10.0 = 31.5 and (sold) 11.5 + 10.3 + 12. 0 = 33. 8
so am I going to be taxed on the differential 2.3?
or due to wash sale rules, I would be taxed on 2.7 then?
Following assumption must be applied
Using RH, so it wont let me select specific lots, but first in and first out
No complicated tax situation just W2 9-5 workers who want some financial freedom in early retirements
All day trading
