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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
My losses from the Schedule D then should be included on my Schedule C before transferring over to Line 12 of Form 1040.
That's not correct. You're confusing day trading with a Mark to Market election. With day trading your gains and losses still go on Schedule D but your business expenses such as margin interest, computer costs allocatable to the business, etc. go on Schedule C. In effect your losses will be on Schedule D (limited to $3,000 like everyone else) but your day trading expenses will go on Schedule C (unlike others classified as investors.)
It's too late to make a Mark to Market election for 2014 (and even for 2015.) The last day to make the election for 2015 was on April 15, 2015. Consequently, the earliest year you can make it for is next year - 2016.
The Fairmark Press site has an explanation of this:
· http://www.fairmark.com/traders/mtmelec1.htm and
· http://www.fairmark.com/traders/mtmelec2.htm
So does any of this $50,000 that I can't deduct in 2014 carry over to future years?As noted, the $50,000 isn't deductible this year. As a day trader without a Mark to Market election your losses are limited to $3,000 this year. The balance is carried over as a capital loss, not a business loss.
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
My losses from the Schedule D then should be included on my Schedule C before transferring over to Line 12 of Form 1040.
That's not correct. You're confusing day trading with a Mark to Market election. With day trading your gains and losses still go on Schedule D but your business expenses such as margin interest, computer costs allocatable to the business, etc. go on Schedule C. In effect your losses will be on Schedule D (limited to $3,000 like everyone else) but your day trading expenses will go on Schedule C (unlike others classified as investors.)
It's too late to make a Mark to Market election for 2014 (and even for 2015.) The last day to make the election for 2015 was on April 15, 2015. Consequently, the earliest year you can make it for is next year - 2016.
The Fairmark Press site has an explanation of this:
· http://www.fairmark.com/traders/mtmelec1.htm and
· http://www.fairmark.com/traders/mtmelec2.htm
So does any of this $50,000 that I can't deduct in 2014 carry over to future years?As noted, the $50,000 isn't deductible this year. As a day trader without a Mark to Market election your losses are limited to $3,000 this year. The balance is carried over as a capital loss, not a business loss.
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
For gains and losses in your situation, you would report your stock gains and losses as if you were not a day trader. In effect, you would enter them the same as anyone else. You would also need to create a separate schedule C (business) where you would report no income, but would deduct margin interest and any other direct costs you may occur. Unlike an investor, these would be business expenses, not itemized deductions.
As you're moving into a complex field professional help, at least for the first year, might be in order.
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
1. without M2M election, can I still report gains and losses on schedule C?
2. Without forming a sole proprietor, S Corp, LLC and etc, (I do trade over 50 tickets and/or $500k equivalent daily) can I still consider and report tax as professional day trader status and treat losses and investment expenses on schedule C?
3. As an individual (with extensive daily trading tickets/volume daily), will I still need to consider my 2015 losses with $3000 limitation on Schedule D?
4. From #3, if reporting losses on schedule D, can I expense day trading equipment, subscriptions, educational books/DVDs etc, and software?
5. I have Home & Business TurboTax. The schedule C is under business section. I also always use walk me through feature provided.
Thanks
Shun
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
It turns out your home office expenses aren't deductible
(this is because it doesn't see any schedule C income and doesn't know to look at schedule D)
Your home office deduction carryover to 2017 is $4,010.
Your home office deduction (for 2016) is $0.
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I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into TurboTax, so that I can capitalize on the full range of deductions?
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