Stock Markets Exposed

How does stock trading affect taxes??

does anyone have any good websites that detail the effects of stock trading on taxes?? I'm specifically looking at whether you can use money lost in the stock market as a tax write off.

Public Comments

1. there are multiple questions that require answers was 2007 your first year trading? If so and you elect to be treated as a professional trader [file schedule C] then your net loss may be deductible against your other income. otherwise, your capital losses are deductible only to the extent of your capital gains plus $3,000. the excess carries forward to future years. *** the tests for and tax ramifications of being a professional trader are complex. try searching irs.gov for their guidance, then look at traderslibrary.com on the web for books on the subject. {Hint: if you also have wage income in sufficient quantity and duration that trading was obviously a part time activity, the IRS will try to deny you status as a professional trader.}