Re: Day Trader and calculating current trades tax liability

vrobert · Aug 15, 2023 12:33:23 PM

Hello - i am a pattern day trader. I run a year-to-date summaries in my trading account that show realized/unrealized losses and gains. From a tax perspective, where on my statement should I be looking to understand what I have as taxable income as of now (all realized losses and gains)? Should I be looking at "Mark-to-Market P/L statement and taxes"? If Turbo Tax had something I could plug in my statement and tell me what I owed in taxes same day and time that would be invaluable. Looking for any help on what others use to easily manage this. My brokerage doesn't have really great tools..(IBKR)

Day Trader and calculating current trades tax liability

@vrobert wrote:

You get marked as a PTD at the brokerage if those requirements are met. You made it sound like I need to do something per the IRS.

PDT and trader status involve different standards and anyone who tells you differently is just wrong.

Again, PDT is a FINRA thing relating to margin requirements while trader status is an IRS thing relating to a person's frequency and type of involvement in the activity of trading.

Just because you are considered to be a PDT by your brokerage (per FINRA) does not necessarily mean you would have trader status in the view of the IRS.