@M-MTax
"Agree with ..... ALSO @Trader you DON'T have to stop trading completely in November.....You just CAN'T trade SUBSTANTIALLY IDENTICAL securities involving losses or those losses can't be recognized without an MTM election. Like said.....keep a list of "no trade" stocks."
I understand, but I just need a clear answer. So say I trade XYZ stock every month, but suffer a loss in one month. Does that loss ever get deducted? Even if I stop trading it in October?
"You should understand the difference between "realized" and "recognized" for tax purposes.....it's important."
I mean as in this is the amount I actually made, which as it stands now is 12K. Will they recognize that I only really made 12K, if I stop trading in October? If that is what I have to do to book any losses?
"In the end you have no idea whether you will have a 12K gain when the year is out if you keep daytrading."
Right, but that would make the situation even more scarier. As the IRS would be taxing me on literally no gains, if the losses never take effect.
