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Showing posts with the label income-tax-on-f&o-trading-in-india

TAXES FOR TRADERS

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TAXES FOR TRADERS


Think day trade returns come without a catch? Think again, because the IRS has plenty of ways to catch you come April 15. Day trading involves strategies that generate both high returns and high tax liabilities, which can eat away at your total return if you are not careful. Not all of your expenses are deductible, and you might think that you’re day trading, but the IRS will have a different definition of your activities.
Taxes themselves aren’t necessarily bad, because somehow we have to pay for things like roads and schools and national defense. But taxes can be devastating to your personal finances if you haven’t planned for them. You need to consider the tax implications of your trading strategy right from the start and keep careful records so that you’re ready.
Tax issues for day traders are complex and change frequently. Check the most recent federal regulations and work with an accountant or tax expert who has experience in these matters. I’m a reasonably social…