Datek Brokerage $9.95 a trade Message Board

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Non-Tech : Datek Brokerage $9.95 a trade

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To: Eleleth who wrote (3160)	6/12/1997 9:53:00 AM
From: Jon Tara	of 16892

Eleleth, ask for your tuition back. All profits from trading are capital gains. Because day-trades are held for less than one year (duh!) they are short-term capital gains, and thus are taxed at the full personal income tax rate. Yes, you get a 1099 at the end of the year, as you do with ANY brokerage. There are various type of 1099s, and this is one of them. The 1099 lists your proceeds from the sale of stock. You (or your tax professional) have got a LOT of work to do at the end of the year accounting for both sides of each trade and adjusting any wash sales. You do NOT simply take a 1099 and staple it to your return! :) But day-trading profits are NOT earned income. As to any advantage/disadvantage to setting yourself up as a LLC, I'd advise you to discuss this with a good tax professional (CPA or attorney). If you have never traded stocks before (apparent), you probably shouldn't be a SOES trader. I'm a bit apalled that somebody is teaching "SOES classes" to people with no investing experience and handing out half-baked information. Care to share with us whose "class" this was?

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