1. Hi Guys,

    When do traders have to pay the taxes - is it quarterly or annual when filing the taxes ?

    Thank you

  2. If you are self employed you normally pay your estimated taxes quarterly.
  3. Are taxes paid on realized gains within the quarter?

    If so, can the tax burden be offset by losses from a previous quarter?

  4. In the IRSs eyes, your goal is to pay the correct amount of tax each quarter. If you lose in one quarter and paid the previous, you probably should not pay any estimated tax for the loss quarter. However, you cant take back a payment you made so it is all a guess. How do you know if you are going to win or lose in the future? Just try your best and either overpay during the year or pay penalties because you didnt have a crystal ball.
  5. Basically you try to estimate your yearly profits and base your estimated tax payments on that. If you underpay you risk a penalty at year end. If you overpay you are just entitled to a refund. Some people get into the habit of overpaying their yearly average by 10% to avoid the risk of a penalty.
  6. If this is your first year of making big capital gains if memory serves me right theres a safe harbor provision. I would email Robert Green or pay for a hour, hes worth his weight in gold.
  7. There is a bit of safe harbor. I am obviously not a tax expert.

    https://www.irs.gov/taxtopics/tc306

    Basically,
    upload_2020-6-8_14-0-46.png

    So, if you wildly underpay, but pay more than 100% of last year, there should be no penalty. BUT, it probably does come with a big problem: IRS will most probably stick you with a coupon book for next year (assuming you make at least as much next year), and if you dont pay them because you make less next year, well, then I dont know. I suppose you can talk to them and explain

  8. I have no idea how much Im going to make or lose, especially with all this CV volatility.

    The only thing Im certain of is that I will be in the game. Like Lemmy said:

  9. What I was always told was that as long as you pay 10% more (in total estimated tax payments) than your prior years tax bill you should be okay. I have done that and never had a problem.
  10. Bingo! I used Robert because he found some many amazing ways to legally avoid while allowing me to create a hybrid 401k, buy a new 6000 lb truck and pay my ex a salary that the 401k took off our taxes.

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