Day Trader Makes $1.2M and pays $0 In Tax! (Using Limited Margin IRA)
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- Опубліковано 10 лип 2024
- Day Trader Makes $1.2M and pays $0 In Tax using Limited Margin IRA
As a successful and consistently profitable trader one of the biggest blows to your account is going to be taxes! One of the best tax strategies (without exiting the US) is trading in a limited margin IRA! Limited margin means you can use unsettled cash proceeds in your IRA to trade stocks and options actively without worrying about cash account trading restrictions or potential good faith violations!
**Note You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. However, you may have to pay taxes and penalties on earnings in your Roth IRA (anything above your contributions). **
🚀 Learn How To Slash $30K Off Your Taxes Without Being A “Tax Expert” Or Spending Money On An Expensive CPA!
Free Strategy Session: www.thetaxonomics.com/strategy
🏦 BEST BROKER FOR LIMITED MARGIN IRA TRADING 🚀🌚💸:
www.interactivebrokers.com/mk...
⭐Schedule a Trader Tax CPA Consultation! (Available May - Dec Only)
calendly.com/tradertaxcpa/
Time Stamps
0:00 Introduction
0:47 Barriers to Entry
1:23 How’d He Do It?
3:05 Margin Trading
4:21 Limited Margin Defined
5:05 What Is Not Allowed
5:36 Who Can Use A Limited Margin Account?
6:00 Other Considerations
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DISCLAIMER: I am not a financial adviser but fortunately I am a CPA :). These videos are for educational and entertainment purposes only and should not be taken as "individualized" tax advice. Should you need tax solutions I highly recommend consulting with a professional or our CPA Firm. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
AFFILIATE DISCLOSURE: I only recommend products and services I truly believe in and/or use myself. Some of the links on this web page are affiliate links, meaning, at no additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. Commissions earned will be used towards growing the content this channel.
🚀 Learn How To Slash $30K Off Your Taxes Without Being A “Tax Expert” Or Spending Money On An Expensive CPA!
Free Strategy Session: www.thetaxonomics.com/strategy
🏦 BEST BROKER FOR LIMITED MARGIN IRA TRADING 🚀🌚💸:
www.interactivebrokers.com/mkt/?src=brianriveray&url=%2Fen%2Findex.php%3Ff%3D1338
⭐Schedule a Trader Tax CPA Consultation! (Available May - Dec Only)
calendly.com/tradertaxcpa/
Are you still doing cpa consultations?
@@justifiedmasagony3635 later in the year .. in the thick of tax season so I’ll probably open back up in May
As always. Content is clear, concise, no fluff. Thanks again, Brian!
Great Information. Thank you
Thanks for your time while making these videos. I learned a lot from a few of your videos!
Thank you for the information!
So glad i found your channel, Mr Rivera.
Such great information. Thanks.
Thanks for what you do
I hope you come back with a video soon... Ive been binging your videos and your channel is criminally underrated!
Coming in soon just had a detox from tax season ;)
For options traders you can add long contracts to short premium selling strategies like short strangles. Adjusting the long contracts out of the money is still defined risk but simulates naked positions in a normal margin account.
Thank you for your knowledge. I'm new to trading, but want to do it right so I watch you. Thanks for the video.
Awesome video!!!! One question, can you trade futures in a retirement account?
New subscriber here
Hey just watched your video and I am wondering if you do taxes for individuals like myself ? thanks
This is good
hi Brian, can i get your thoughts on this... i have a large trading loss 2021 and i would qualify as mark to market but just thinking my income will rise over the coming years should i take the loss all in 2021 or not elect mark to market and rollover 3000 each year coming? thanks
Do you do Canadians, too? If not any advice or recommendations. Thanks
Brian... I want to trade out of my ROTH IRA but I am not sure of the "earned income" requirement for contributions into the account. Do profits from trading futures contracts violate the earned income rule?
At 2:24, could you please explain where you got the 50% from? In other words, how do you know the early withdrawal penalty plus capital gains tax will be less than that number?
What do u suggest for a person who trades thru a funding company after passing their combine ex: Apex funding ? I trade futures I’m building my acct and will take money out and trade thru my LLC
Would love a video helping people that trade with ftmo or any funded company
I had the same exact question and landed here. All traders figure out about the tax part sooner or later, the easy way or the hard way
@BrianRiveraCPA **Hey Brian, can you do a video on futures tax treatment - specifically for day traders.** My understanding is that for futures trading the taxes are... referred tax rates on futures trades, based on the 60/40 rule. That means 60% of net gains on futures trading is treated like long-term capital gains. The other 40% is treated as short-term capital gains and taxed like ordinary income. Can we do better than this?
can i trade options in a roth ira? i trade 0dte contracts. or is that not allowed?
The actual trick is to find a day trading method that actually works consistently for an IRA acct.
1000000000%
This is EXACTLY what I came here to say. Where on earth am I going to find an IRA margin account where I can day trade options with minimal brokerage fees? I don’t think there is one.
does the wash sale rule apply to a Roth IRA
I HAVE QUESTIONS!!: I'm researching laws and regulations around creating an LLC as a day trader and qualifying for trader status on my taxes (I use cash accounts, no margin). I'm married; is there any way to open an LLC as a trader, with my spouse as a member of the LLC, without affecting all the great deduction benefits of having trader status and protection from wash sales? Also, I'm aware that including my spouse on an LLC would turn it into a multi-member LLC, thus taking away its title as a "disregarded entity" (and going from a 1099-b to a 1065 and a K-1 from each of us when filing taxes); would that affect the method in which I'm supposed to pay myself from my trading profits? Or better yet: Can I even add my wife to an LLC with trader status on it???? Is that possible? I just want her to benefit from the business side of the world too.
Brian excellent video as usual. Can a trader that just acquired MTM with previous years filing carry back losses to the years before that MTM request filing, can't find an answer to this question, please help.
Unfortunately it’s not retroactive
What Naics code is used to apply for EIN ?
can you make a video on what best for funded traders by prop firms?
Great idea I’ll add to the list
I second this motion, especially for Futures Funded Trading accounts like Topstep, Leelo, etc.
This is exactly what I’m looking for
Great Video! Would you happen to know any qualified CPAs working out of Canada (Toronto Specificallyy) that specializes in day trading tax reporting/preparation. I started options trading last year with interactive and feel in over my head regarding my tax filing. Appreciate the help ahead of time!
Would income that is not earned income be eligible for the Roth IRA? Grants/income from Social Security? Is there a minium requirement for Limited Margin?
Hello, I had a question. I have an active ROth IRA with Vanguard. I can move it to tasty trade, who i usually do trading with. Do Roth IRA's allow CSP? Thanks
same question
Thats why trading should always be a side thing
Few details that would be helpful here Brian... what was the timeframe here for growing his IRA to $1.2M? And how much did he start with... like how much was he trading with, how much was able to be rolled in from other accounts? Since usually $7k max per year in a Roth
Hi Brian, do most CPAs know about all these trader tax benefits or should traders reach out to CPAs who specifically specialize in trading?
Nope
You should absolutely find a day trading specialist CPA? I did look around. It’s not so easy to find one.
you should make a video for non Americans that trade in USA
Yes. I made today $4,500
Hi Brian, I've been trading for a few years as an investor. I did start an LLC for trading with an EIN #. I have a question, my broker TD Ameritrade said, I must send in the form 3115 for mark to market? I have the form , but confused how to fill it out. Can you suggest what to do?
I am a newly profitable day trader, and I set up an LLC but the bank wouldn't give me a checking account. Im super interested in learning from you how to move my business forward.
I went through the same thing, did you find a bank, I shopped around
hey Brian,
can you be a active day trader and elect m2m when meeting all the criteria but trading in options vs stocks? can you be a full time options trader only and elect m2m?
Yes you can
@@BrianRiveraCPA thank you!!!!!
That's firrreee!
So the questions you answered you can find in all the other wash sale videos. How about we get just a bit deeper. For day traders, lets say you buy an option 5 times with in 7 days all for profit, and then the 6th time you finally have a loss. I get that I can’t buy for 30 days, but according to the rule I’m not allowed to have bought in the previous 30 days also. What does that mean??? So in that above scenario does that make it now 53 days until I could buy that stock again? And lets say you bought a different stock 1 time and sold if for a loss. You buy it again a week later and make a profit that also covers the new cost basis, can i now trade that stock without worry about the wash sale or am I still under the 30 day rule? Seems like there’s sooooooooo much going on with this rule, hoping someone can questions like these, because NO ONE IS!
Making 50-100k day trading a year what would you reccomend is done?
Maaannnn how come I didn't know my childhood friend Brian has all this going ‼️💪🏿..CPA‼️
Let’s gooo 🗣🗣
he talking about Tim Gratini
How big is the monitor behind you? Model number?
Dell UltraSharp 43 4K USB-C Monitor - U4320Q
I'm NOT a successful and consistent profitable day trader.. but here I am anyway!
Speak it into existence 🗣… gotta start somewhere!
No hablas nada de español ? Me podrías recomendar a un contador que conozca de inversiones me bolsa . Vivo en Los Angeles CA
Do you have any foreign clients trading U.S. based securities? I live in Japan and I trade with U.S. broker, but since I am living here, Japan taxes me roughly 20% as my income is seen as capital gains. I also have to file my U.S. taxes. What can I do to avoid being double taxed?
Hi Javy, I'm in the same situation. Did you ever get a solution?
@@ccap1018 Yes. I pay 20% tax in Japan, and then I used that tax paid to Japan as a tax credit for my American taxes. That way there is no double tax. It's called foreign tax credit.
Thank you for your reply!! OK that's great! Excellent solution 👍 thanks again 😀
Are you still taking cpa consultations?
Likely open it back up in may.
@@BrianRiveraCPA thank you. I’m still practicing on my sim account and may look towards getting some insight on how to start my day trading business
At this point why he doesnot move to dubai?
I'm confused. What's this Trader status thing?
All I know is learn trading, create an acc with a broker and deposit some money and start trading to make money.
I trade forex and I'm confused with this Trader status thing😢😢😢😢
I thought that capt gaines in roth ira are tax free?
They are
Brian I live in Las Vegas but las vegas does not has any income tax . Do traders living I las vegas of to pay tax been that las vegas is 0% tax free. 🤔
Nevada does not have a state income tax… you pay tax at the federal level
@@BrianRiveraCPA so that means as a trader I'm good then without of to pay tax for a trader that makes 200k a month !! So no tax woww is that what you're saying 🤔
So only $0 in taxes if you hold until you're in your 60's?
Can you do this through a self directed roth LLC?
My name is George
why did he pay 30% for his early contribution
I think newbie traders need a simple plan.. like if u make $1k/day save 37% for tax...haha
and most newbies don't understand WASH SALE!
Always good to set aside at least 30 % of net profit.
Reading about people grabbing multi-figures monthly as incomes in investments even in this crazy days in the market, any pointers on how to make substantial progress in earning? I would appreciate
I don't trade, I invest with a professional assigned by a crypto company that trades for people and returns profits on weekly basis for me and you can invest your capital and get weekly Returns of investment (ROI) without any extra fees attached
The professional is Ms Emily Donald 🔥
@@howeross336 Really you know her😳... I even thought I'm the only one she had helped walk through the fears and fall of forex trading
please how can I reach her, I want to invest?
@@hafsatsufyan4863 It's easy to reach her through her telegrm channel
Good content, but TOO COMPLECATED for most.
Yeah I did think about that before putting out this video. Probably go over the basics of retirement accounts next !
Hello Mr. Rivera and thank you for the great videos. I sent you a message via FB and it replied to send an email. I did, twice, and it came back as undelivered. How can I connect with you?