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Day Trader Saves $20K In Taxes Using an LLC!

One of the most frequently asked questions I receive is, “Do I need to incorporate my trading within an entity”? Potentially a Partnership, SMLLC, S-Corporation, or C-Corporation?

The quick answer is — IT DEPENDS.

I wish there was a one size fits all solution to this question.

Each traders facts and circumstances is completely different the next.

🧟‍♂️ Connect With Me On Social Media! https://linktr.ee/BrianRivera

Interested in booking a consultation to discuss your situation in detail?

Don’t forget to check out our Day trader Blog Resource Center!

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How To Qualify For Day Trader Status

The IRS buckets everyone by default as an “investor” for tax purposes.

In this video we discuss the criteria that needs to be met in order to qualify as an active day trader in the eyes of the IRS.

This is not an application but a set of facts and circumstances that must be met each year to meet the qualification!

B – Business Expenses

E – Equipment Used in Trading

H – Hours Spent in The Market (4+ per day)

A – Average Holding Period Not To Exceed 31 days

V – Volume of Trades (720+)

E – Extent at which you trade (75% of market days)

If you qualify you get TWO main benefits:

a) Business Expense Treatment and

b) The opportunity not “right” to Section 475 M2M

🧟‍♂️ Connect With Me On Social Media! https://linktr.ee/BrianRivera

Interested in booking a consultation to discuss your situation in detail?

Don’t forget to check out our Day trader Blog Resource Center!

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NOL 5-Year Carryback Relief

***NOTE THIS CARRYBACK RELIEF IS NO LONGER APPLICABLE***

The IRS provided guidance on how taxpayers who want to elect to waive or reduce the new provision requiring taxpayers with net operating losses (NOLs) arising in tax years beginning in 2018, 2019, and 2020 to carry them back five years (Rev. Proc. 2020-24).

The IRS also extended the deadline for filing an application for a tentative carryback adjustment under Sec. 6411 to carry back an NOL that arose in any tax year that began during calendar year 2018 and that ended on or before June 30, 2019.

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[WEBINAR] Day Trader Taxes | Strategies and Debunking The Top 3 Tax Myths!

Day Trader Taxes – Strategies and Debunking some of the Top 3 Tax Myths For Active Day Traders. Whether you are a brand new trader or seasoned veteran taxes is never a one size all fits approach!

In this webinar I had the opportunity to discuss and debunk the Top 3 Day Trader Tax “Myths” and share a few real world case study examples with the trading education company Bulls on Wallst.

🧟‍♂️ Connect With Me On Social Media! https://linktr.ee/BrianRivera

Interested in booking a consultation to discuss your situation in detail?

Don’t forget to check out our Day trader Blog Resource Center!

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Latest Updates on Tax Filing Deadlines and COVID-19 Relief Programs

Tax Filing Deadline Updates

Per Treasury Secretary Mnuchin “We are moving Tax Day from April 15 to July 15.”  All taxpayers and businesses will have additional time to file and make payments without interest or penalties.  Although the 4/15 deadline pressure is off, we encourage all of our clients to get ahead of the curve as the 7/15 deadline will be here before you know it!  There has been no word on if the Mark-To-Market Election deadline has been extended beyond the 4/15 date.

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