I read an article on the Puerto Rico living. Apparently (don't quote me on this, do your own due diligence), you have to live in Puerto Rico for at least 1 year before you can apply for the capital gains elimination. In addition there was like an initial (I'm not certain on this amount) $15,000 or $25,000 application fee. Also, you would have to pay a yearly $5,000 permit fee to maintain capital gains elimination status. The article also went on to caution possible movers (those wanting to relocate there) that there is no guarantee that the capital gains tax elimination will last indefinitely. It can be taken away with the stroke of a pen if the Governor decides to eliminate it. The whole point of the story was to caution anyone who thought moving to Puerto Rico would be something easy and permanent.
Sheesh. I’m not on your level yet of making millions 😅 but I just started trading in a Trust I inherited after my father’s passing last year and “accidentally” made $80k in the last 8 months. I’ve always been a long-term investor, but my trading revenue is pushing my tax bracket through the roof! So this strategy will be EXTREMELY beneficial and was the exact information I came on RUclips to find. One of the few channels that are more than worth Subscribing to 👌🏾🙏🏾
Hey Ross, Awesome vid. Realy enjoyed how simply you broke everything down! I would really like to see a vid that goes more in detail about moving to PR as a day trader and how that's going to look on the tax side of things. Once again, Thanks for the great vid!
Thanks for sharing Ross. I’ve been out of the trading market, however, I enjoy catching up with your RUclips channel posts and watching your success and growth. Even your courageous loses you post I try to learn as much as I can to mentally prepare for the wear and tear that may take a toll on most traders including myself.
If you have more than $3000 of capital losses you carry them forward to next year. In that next year you can apply all those losses against capital gains. For example, if you lose $200k in 2024, and take $3000 of those losses against other income you will have $197k of losses carried forward to 2025. If you make $197k of capital gains in 2025 you can right off all those gains against your carry forward $197k loss and have zero capital gains taxable income in 2025. The $3000 limit is just how much you can deduct from other (not capital gains) income.
Thank you for mentioning that. I found it annoying when he said 30 years. Tax loss harvesting is a wonderful strategy. I frequently sell for a loss and repurchase 31 days later, then carrying losses to offset gains.
Your max contribution allowed in a Roth IRA for traders under 50 yrs. Old is 7k, but if you are 50 or older, which I am, the maximum amount is 8k. Awesome video. Traders need more education like this!
Thank you for sharing this information, I’m looking at getting setup properly and shifting from my w2 and this is instrumental for developing the right path for me. I really appreciate it!!!!!
Great video. Happy to see you talking about the tax side of things some more. I know you've done some in the past. But this hit all the current strategies.
Except for today - December 31 - most of Puerto Rico is without power due to their electrical grid going down without an external event causing it. Apparently, frequent power outages there are typical.
Love this video!! The title should be changed to "Watch this video first before you start day trading!" A couple of other things I found out about Roth IRAs: -You can withdrawal penalty free after 59 1/2 years old. So you're thinking hey I'm 60 so I can just start trading in a Roth IRA and take as much as I want out right away... WRONG. There is an additional requirement that the account has to be 5 years old before you can withdrawal without penalty! If you set it up for 2024 before tax day you can trim 1 year off of this. - One cool thing is that you CAN withdrawal any of the contributions you made to the Roth IRA penalty and tax free. So say you fund 14K in your Roth IRA. You start trading out of it and make some money. Well you can pull that 14K that you funded the account with back out of the account penalty and tax free! -Roth IRAs have income limits. If your income is too high, you can't contribute funds to one. -IMPORTANT: Check with your accountant before taking tax advice of someone commenting on a youtube video!😁
Hi Ross, you may know this, I just haven't seen it mentioned in any videos. The solo 401k with the 69k threshold you mentioned is something that you can do a Megabackdoor Roth Conversion with. A way to quickly bring up your Roth IRA over the 25k pdt rule.
@@unavailabill I've spoken with a Schwab Retirement agent about it and confirmed it with them. I won't be doing the conversion until maybe end of Q1 or Q2 next year so I can't fully confirm the process myself.
At 38:43. Not exactly. Had $100K+ of losses COVID tax year; could only wright off the $3K as you stated. But it doesn't take 30yrs if you have gains the next yr. For example. $300K profit in next year. So $300K - $97K+ previous loss carry over. THANK YOU FOR THE mark to mark info! Will look into that change. Play the wheel, was well ahead of you when you started (as I've been trading much longer)... But if you're pushing $10M now, you've sparked my interest in momentum trading. Will consider a course :) Info is gold, thank you!
Thank you Ross. This is really important info other trading channels don't teach. As a wannabe day trader I value your contribution to my trading journey. Happy new year
Thank you so much for this info Ross. That Wash Rule really got me last year and this was my most profitable year so I'm hopeful I'll be able to put this info to work.
7m in a roth is beyond impressive. congratulations. how are you able to day trade in a Roth Ira. charles swab told me i can only be at trade at level 0 so thing like covered call, not the full day trading. Are you able to buy and sell anything at anytime? can you do a video how you trading in you Roth ira pls
Don't do it, it's actually a very messy controversial issue, if Puerto Ricans find out you moved there just to dodge taxes you'll be doxed and everyone will hate you. Watch the videos by Bianca Graulau, it's getting crazy down there. The only way you'll most likely be safe down there is if you move into Palmas Del Mar or Dorado Beach, but those places are for people who are multi-millionaires and billionaires.
Speaking to Etrade rep, you have to declare a wash sale before actually selling. Basically at least with them its a documented process. As he noted its not automatic and seems to have a lot of rules.
Question - Do you have to have an S-Corp/S-designation to get tax credit from storage/solar etc? Or can you simply have a plain old LLC and get these tax credits?
@@DaytradeWarrior Love your videos.. I trade from Colombia..(no state taxes but need visas ) but plenty to do.. Puerto Rico is not boring in San Juan but the cheaper areas just have beaches and are kinda boring. I was just there for the holidays..
In order to quickly fund a Roth IRA trading account you can open up an SEP IRA and then convert that into a roth. I believe the maximum yearly contribution of the SEP is around 70k..
Two questions. 1. How much money can I make trading into that Roth per day? 2. I'm already 62 yrs old and going to start day trading. Can I just start the roth and then take distributions from it right away?
If you're 62 with money to retire just do that don't try to learn day trading( something +90% fail) if you wanna potentially lose your money go ahead but thinking how much can I make/day is the first red flag before losing money. Be careful I wouldn't advise my parents or grandparents getting into this
You may have found success in most things you did your life but day trading will most likely not be the automatic solution you're looking for. At least paper trade with 10, 25 or 50k something close to what you will be trading w in real life should you actually start.
Normally when you roll money from your traditional IRA to a Roth IRA you have to wait 5 years to withdraw it. But because you are already over 59 1/2, that rule does not apply to you. The second "5 year rule" is you have to wait 5 years to withdraw earnings from the Roth IRA. You can take your own money out at any time without penalty - you already paid tax on it when you did the roll-over. As Ross says in the video, you might still consider taking money from the Roth in under 5yrs, because for you over 59 1/2, you will pay 10% penalty plus income tax, but if you are in a low bracket that might still be acceptable vs trading outside the IRA and paying tax on all your profit.
Hey Ross, I need some guidance! I'm trying to attach my trading account to my LLC, but I'm a bit confused about the tax implications. Do you have any tips or resources that could help me navigate this process? Appreciate your help!
this is an effective strategy 😂 BUT if you want to write off more than $3,000 in losses against other income you’ll still need mark to market accounting!
Hi Ross, what are the chances of being audited by the IRS if I apply for trader status and elect mark-to-market accounting? I've heard that making this election can increase the likelihood of an audit.
Is there any implications with setting up a business account with a broker? Do you have a higher chance for audits? Thanks Ross for all tue work you do!
Why does it have to be Puerto Rico? None of these states have capital gains tax Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, and Wyoming. Are there additional tax benefits to Puerto Rico aside from no capital gains?
Dam. I just opened a IBKR account in Canada and now I have to think about restrictions? Is there any alternatives? I do not want to deal with restrictions...
I have LLC with state of Oregon -- when i set up trading account with Etrade broker should I check C or S corporation, or as a Sole Proprietorship - SMLLC Tks Jake
Hey Ross et al.... Any experience with the CPro platform on CMEG? I see they're running a promo for no commissions and fees through the end of January 2025
Over the years I’ve bought real-estate which gives me rental income, and I also receive royalties from my book, RUclips, and I receive income from Warrior Trading
Good "prompt you" clip, I'll need to look into some Aus loops. We have Super but there a max pa limit. A specialised accountant is something to definitely look into though
hey guys I am basically new to the trading community and I am just about to get started what would be the best trading platform to start day trading with low to no fees? Also, I've been watching you tube videos about all these trading strategies so any advice big or small would be much appreciated! Thank you!
You mention in the ROTH IRA you still need 25k and would be subject to the pdt rule. Would this only be true for leverage or margin settlement accounts? My understanding was cash accounts were exempt from the pdt rule as long as there isnt margin. Thanks for the awesome videos
@DaytradeWarrior thanks for the quick response! My Cash Roth IRA is around 1k. The account does not have margins enabled. So I can only trade my cash once per day. Just wanted to be sure I can trade 5 days a week and not trigger PDT.
Form 3115 was one of the most rediculous tax forms to fill out ever. It seems to be a catch all form for any kind of business changing any aspect of its accounting method--the MTM election is just tucked into it. Most of it just does not apply to making that particular change.
Hey I offer a full course of education for warrior members, you can check it out on the 2 week trial it includes Live stream trading with me, scanner alerts, member chatroom, news alerts and customizable charting as well as some chapters of the education in the warrior pro education portal www.warriortrading.com/pro-preview-trial/
Hey Ross, I’m curious to know how long the compliance review takes for IBKR if I trade above the average volume for a small cap stock. I love using IBKR with trading view and I don’t want to lose a trade bc my account gets frozen!
I think this was a bit confusing wrt wash sales. Wash sales are only relevant if you have a “net loss” for the year which you want to claim as a deduction. If you are net positive (made more than you lost from your trades regardless of when you bought and sold them per wash sales rules) then you are not impacted by the wash sale rules since you have no loss to deduct from your taxes.
@@DaytradeWarrior yes, Unortunately I fall into this category. I started day trading in July 24' so I will not be able to get M2M and day trader status until 25' tax year
What do you mean they don't work anymore? If you learn how to day trade, then day trade in your Roth IRA. All of the gains within it are tax-free. It also depends on your current tax bracket. If it's high now and going to be lower later, use a traditional IRA and trade with it as well.
Can i move to Puerto Rico and live there for over a year and sell all my stocks that i bought many years ago (while in the mainland USA) that have swelled up too high and pay zero capital gain taxes? or the buy and sell both transactions should occur while in Puerto Rico?
Thank you Ross for these videos, Ross do you think it’s worth it to have a daily goal sometimes I feel like it makes me take extra risk to hit that goal if I’m a little off? hope everyone is having good weekend
can you have an M2M filing even if you dont have an LLC. Like just a regular person trading daily trying to make a living along with another full-time job?
Would you recommend obtaining trader tax status and wash sales before filing 2024 taxes with the intentions of day trading in 2025? I am currently a warrior starter member and have been trading in the sim and plan to go live February of 2025 anything you would recommend me doing before I open a trading account (tax related)
Personally I would file mark to market accounting now and notify my brokers asap so I wouldn’t have wash sales in 2025. Then for my 2024 return I’d claim deductions as trader tax status as long as I’d spent a good portion of the year trading.
No point trying to file for it in 2024 as you just said you aren't even trading in a real acct which makes you not legally a trader tax wise 2024 in the eyes of IRS. If you start trading in Feb 25 then yes that next year you should if you find the benefits outweigh the negative tax implications etc
in the case where you have elected MTM accounting and following year(s) you do not qualify for TTS because of not so day trading activity. And lets say you have a long position(s) held over a year with realized gains in that tax year, and some frequent trades with wash sales. 1 - Will the wash sale allowed rule still be applicable even though you do not qualify as a trader (TTS)?? but have MTM election made in previous years? (activity has been like a investor) 2- it's the same only account, can that long position gains be treated as capital gains since you did not qualify for TTS? Thanks
You really don't have to worry about wash sales until the end of the year. If you have unrealized losses on a stock in December or even maybe late November. Don't trade it for 30 days . You really don't have to switch to day trader status. Plus with day trader status I think I'm correct in saying no matter if your up or down in a trade at the end of the year. Your required to close out the trade which would suck of you have a huge unrealized gain that you want to carry to the next year and not close out
Trader Tax Status (TTS) is rather subjective, but the guidelines are generally that your trades must be less than 30 days. I think you are confusing mark-to-market accounting and TTS. TTS is just an IRS requirement before you can claim business expenses as a trader. Once you meet the TTS guidelines, you can apply for Mark-to-market accounting. In MTM if you have an open position on Dec 31, you will have to pay tax on the unrealized gain - I think that is what you are getting at. There is an easy fix, you can have 2 brokerage accounts and claim mark-to-market for one (your day trade account) and another as an investment account where you hold your long term positions with normal capital gains accounting. I do that and have had no issues filing. You just need to be clear when you apply for MTM accounting that it applies only to your trading account.
Yes but you need to wait 5 years from when you create a Roth to withdraw tax free capital gains. So if you already have an account created you’re good! If not you need to wait 5 years even tho your 59-1/2 already
@@DaytradeWarrior Shucks! The price of procrastination. So when I set one up this week, I'll have to wait till I'm 69 to withdraw tax free, hence why it's prolly necessary to trade out of it and another account causing me to set up mark to market accounting this year. I trade mostly futures, so those trades are not taxed as ordinary income; it's 60:40.
Am I correct in that the only way I can write off startup expenses (warrior pro, monitors, etc) incurred in Q4 2024 without having live traded yet is to form a business (eg LLC)? Will start live trading in Q1.
I think there is a lot more steps you have to do in order for act 60 in Puerto Rico. Have to buy property, have to donate a certain amount to charity every year etc
Computers’ useful life is five years. I wonder if you can buy a new monitor every five years and deduct that. You might want to check with your accountant.
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
Great video Ross. Thanks so much for taking the time out of your day to pass along the knowledge
Any time
@@DaytradeWarriorcome back any time 🇵🇷 for a seminar
Your point about finding a good tax planner/CPA is a good one. It’s incredibly hard to find that understands all of this as it relates to trading.
One thing to note for us GenXers is that the Roth must be 5 years old before you can withdraw tax free.
Good to know
Hi from Puerto Rico. We need time stamps for this video my friend. Thank you!
This is some of the best trading tax advice you'll ever get.
thanks for finally answering my question on how to handle those wash sales.
I read an article on the Puerto Rico living. Apparently (don't quote me on this, do your own due diligence), you have to live in Puerto Rico for at least 1 year before you can apply for the capital gains elimination. In addition there was like an initial (I'm not certain on this amount) $15,000 or $25,000 application fee. Also, you would have to pay a yearly $5,000 permit fee to maintain capital gains elimination status. The article also went on to caution possible movers (those wanting to relocate there) that there is no guarantee that the capital gains tax elimination will last indefinitely. It can be taken away with the stroke of a pen if the Governor decides to eliminate it. The whole point of the story was to caution anyone who thought moving to Puerto Rico would be something easy and permanent.
Sheesh. I’m not on your level yet of making millions 😅 but I just started trading in a Trust I inherited after my father’s passing last year and “accidentally” made $80k in the last 8 months. I’ve always been a long-term investor, but my trading revenue is pushing my tax bracket through the roof! So this strategy will be EXTREMELY beneficial and was the exact information I came on RUclips to find.
One of the few channels that are more than worth Subscribing to 👌🏾🙏🏾
This was so helpful and amazing!!
Hey Ross, Awesome vid. Realy enjoyed how simply you broke everything down! I would really like to see a vid that goes more in detail about moving to PR as a day trader and how that's going to look on the tax side of things. Once again, Thanks for the great vid!
Thank you for taking the time to prepare and provide us this valuable information!
Thanks for sharing Ross. I’ve been out of the trading market, however, I enjoy catching up with your RUclips channel posts and watching your success and growth. Even your courageous loses you post I try to learn as much as I can to mentally prepare for the wear and tear that may take a toll on most traders including myself.
Nice video. Learn alot.
If you have more than $3000 of capital losses you carry them forward to next year. In that next year you can apply all those losses against capital gains. For example, if you lose $200k in 2024, and take $3000 of those losses against other income you will have $197k of losses carried forward to 2025. If you make $197k of capital gains in 2025 you can right off all those gains against your carry forward $197k loss and have zero capital gains taxable income in 2025. The $3000 limit is just how much you can deduct from other (not capital gains) income.
Thank you for mentioning that. I found it annoying when he said 30 years. Tax loss harvesting is a wonderful strategy. I frequently sell for a loss and repurchase 31 days later, then carrying losses to offset gains.
Good info man! do you know a good tax guy?
Please, I do need more details regarding this information
@@samuelsayomide9220hire a cpa
How do you go about finding a qualified CPA that is an expert in taxation in daytrading?
like he said. Can you have a website you can recommend CPA's expert in day trading taxes. Pls? tysm Ross! Appreciate any info on this..
Your max contribution allowed in a Roth IRA for traders under 50 yrs. Old is 7k, but if you are 50 or older, which I am, the maximum amount is 8k. Awesome video. Traders need more education like this!
Has a Canadian resident, entering the Trading world while operating a US based LLC in Wyoming, this video is pure GOLD! Thanks a bunch Ross!!
Thank you for sharing this information, I’m looking at getting setup properly and shifting from my w2 and this is instrumental for developing the right path for me. I really appreciate it!!!!!
Great video. Happy to see you talking about the tax side of things some more. I know you've done some in the past. But this hit all the current strategies.
All of these complexities have made puerto rico look INSANELY attractive
Except for today - December 31 - most of Puerto Rico is without power due to their electrical grid going down without an external event causing it. Apparently, frequent power outages there are typical.
@@ross-smithfamily6317I am sure all those multimillion dollar homes use some kind of back up generators
Yeah good luck trading on an isolated Island with no power, water, food, or internet.
Amazing video! Thanks Ross!
This was a great video. Can you share the CPAs you use?
Hello Ross. Are you able to share the contact info for the CPA in NYC? Thank you.
Love this video!! The title should be changed to "Watch this video first before you start day trading!"
A couple of other things I found out about Roth IRAs:
-You can withdrawal penalty free after 59 1/2 years old. So you're thinking hey I'm 60 so I can just start trading in a Roth IRA and take as much as I want out right away... WRONG. There is an additional requirement that the account has to be 5 years old before you can withdrawal without penalty! If you set it up for 2024 before tax day you can trim 1 year off of this.
- One cool thing is that you CAN withdrawal any of the contributions you made to the Roth IRA penalty and tax free. So say you fund 14K in your Roth IRA. You start trading out of it and make some money. Well you can pull that 14K that you funded the account with back out of the account penalty and tax free!
-Roth IRAs have income limits. If your income is too high, you can't contribute funds to one.
-IMPORTANT: Check with your accountant before taking tax advice of someone commenting on a youtube video!😁
Can you trade futures in a traditional IRA?
Hi Ross, you may know this, I just haven't seen it mentioned in any videos. The solo 401k with the 69k threshold you mentioned is something that you can do a Megabackdoor Roth Conversion with. A way to quickly bring up your Roth IRA over the 25k pdt rule.
Say what 😮 are you sure about this.
@@unavailabill I've spoken with a Schwab Retirement agent about it and confirmed it with them. I won't be doing the conversion until maybe end of Q1 or Q2 next year so I can't fully confirm the process myself.
Starting around min 42:00 I cover doing a 401k in a business account
Very beneficial video. Thank you!
At 38:43. Not exactly. Had $100K+ of losses COVID tax year; could only wright off the $3K as you stated. But it doesn't take 30yrs if you have gains the next yr. For example. $300K profit in next year. So $300K - $97K+ previous loss carry over. THANK YOU FOR THE mark to mark info! Will look into that change. Play the wheel, was well ahead of you when you started (as I've been trading much longer)... But if you're pushing $10M now, you've sparked my interest in momentum trading. Will consider a course :) Info is gold, thank you!
Your thumbnails and content strat has improved dramatically this year. Way to go, on the self-improvement in your trading and other aspects!
Thank you Ross. This is really important info other trading channels don't teach. As a wannabe day trader I value your contribution to my trading journey. Happy new year
George Devine , thanks for that GenXer information, I'm seriously looking into moving to Pueto Rico
Thank you so much for this info Ross. That Wash Rule really got me last year and this was my most profitable year so I'm hopeful I'll be able to put this info to work.
Gosh Ross! Thank you!
7m in a roth is beyond impressive. congratulations. how are you able to day trade in a Roth Ira. charles swab told me i can only be at trade at level 0 so thing like covered call, not the full day trading. Are you able to buy and sell anything at anytime? can you do a video how you trading in you Roth ira pls
I don’t trade options. I day trade stock only.
Never knew about the Puerto Rico thing. Interesting. I'll think about this again if I ever make profit 😢
Don't do it, it's actually a very messy controversial issue, if Puerto Ricans find out you moved there just to dodge taxes you'll be doxed and everyone will hate you. Watch the videos by Bianca Graulau, it's getting crazy down there. The only way you'll most likely be safe down there is if you move into Palmas Del Mar or Dorado Beach, but those places are for people who are multi-millionaires and billionaires.
Ross, do you have recommendations for any of good Tax accountants? I also trade in LLC, Thanks
thanks ross solid video
Thank you!!
Speaking to Etrade rep, you have to declare a wash sale before actually selling. Basically at least with them its a documented process. As he noted its not automatic and seems to have a lot of rules.
Question - Do you have to have an S-Corp/S-designation to get tax credit from storage/solar etc?
Or can you simply have a plain old LLC and get these tax credits?
Mark to market is only fruitful for cash accounts, if you are trading in an ira, this won’t matter, is this correct?
What is the name of the CPA firm you use? I would like to use them too.
What the bame of the CPA That helps you on yhr tax filings. I am in search of of a good CPA that has experience in filing Day Trading taxes.
You can find cheaper housing or a nice home in other parts of Puerto Rico.. You can find nice apts for $500 a month that are not airbnbs..
I'm sure you are right, I was just showing how much of a demand there is for these super high end homes.
@@DaytradeWarrior Love your videos.. I trade from Colombia..(no state taxes but need visas ) but plenty to do.. Puerto Rico is not boring in San Juan but the cheaper areas just have beaches and are kinda boring. I was just there for the holidays..
In order to quickly fund a Roth IRA trading account you can open up an SEP IRA and then convert that into a roth. I believe the maximum yearly contribution of the SEP is around 70k..
Thank you!!!
Two questions. 1. How much money can I make trading into that Roth per day? 2. I'm already 62 yrs old and going to start day trading. Can I just start the roth and then take distributions from it right away?
You have to wait until your account has been open for 5 years to take tax free distributions
@@DaytradeWarrior Thank you
If you're 62 with money to retire just do that don't try to learn day trading( something +90% fail) if you wanna potentially lose your money go ahead but thinking how much can I make/day is the first red flag before losing money. Be careful I wouldn't advise my parents or grandparents getting into this
You may have found success in most things you did your life but day trading will most likely not be the automatic solution you're looking for. At least paper trade with 10, 25 or 50k something close to what you will be trading w in real life should you actually start.
Normally when you roll money from your traditional IRA to a Roth IRA you have to wait 5 years to withdraw it. But because you are already over 59 1/2, that rule does not apply to you. The second "5 year rule" is you have to wait 5 years to withdraw earnings from the Roth IRA. You can take your own money out at any time without penalty - you already paid tax on it when you did the roll-over. As Ross says in the video, you might still consider taking money from the Roth in under 5yrs, because for you over 59 1/2, you will pay 10% penalty plus income tax, but if you are in a low bracket that might still be acceptable vs trading outside the IRA and paying tax on all your profit.
Hey Ross, I need some guidance! I'm trying to attach my trading account to my LLC, but I'm a bit confused about the tax implications. Do you have any tips or resources that could help me navigate this process? Appreciate your help!
My losing strategy each week avoids me the tax
😂😂
😂😂
Touche 🫡
😂😂😂
this is an effective strategy 😂 BUT if you want to write off more than $3,000 in losses against other income you’ll still need mark to market accounting!
Very beneficial video. Thanks for investing in your subscribers. It’s obvious you love teaching others.
I appreciate that!
Hi Ross, what are the chances of being audited by the IRS if I apply for trader status and elect mark-to-market accounting? I've heard that making this election can increase the likelihood of an audit.
Hey Ross, do you trade in the solo 401k as well?
But the PDT is for margin accounts only. Why would you day-trade Roth IRA in margin account.
Is there any implications with setting up a business account with a broker? Do you have a higher chance for audits? Thanks Ross for all tue work you do!
Why does it have to be Puerto Rico? None of these states have capital gains tax Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, and Wyoming. Are there additional tax benefits to Puerto Rico aside from no capital gains?
Which NAICS code did you used for the trading LLC? Seems like I choosed the wrong one. Thank you!
I buy your book yesterday and I already read for an hour and loving it sir thank you for all the knowledge and discipline 🙏
Glad you enjoy it!
Dam. I just opened a IBKR account in Canada and now I have to think about restrictions? Is there any alternatives? I do not want to deal with restrictions...
I am a 54 year old man living in puerto rico
Since we the local donde have the advantage of the act 60 las is ther ANOTHER way around it.
I have LLC with state of Oregon -- when i set up trading account with Etrade broker should I check C or S corporation, or as a Sole Proprietorship - SMLLC Tks Jake
P.S. Iam single member of LLC
@@akerjeb it depends on how you take your dispersments if you pay yourself a lot then SP isn't great.
I’m surprised they don’t have an option for LLC, which is what you have. I would call them to ask.
Curious where to view the trades or profits for the 7 years it took to build a $500 account to 10m. That's impressive to say the least.
Thank you! the statements are available on warriortrading.com
Am early,big fan from Nigeria 🇳🇬
Does the broker has more strick requirements since you are trading as a business?
Hey Ross et al.... Any experience with the CPro platform on CMEG? I see they're running a promo for no commissions and fees through the end of January 2025
So what do you do for your spending money? Just take it out of the retirement account?
Over the years I’ve bought real-estate which gives me rental income, and I also receive royalties from my book, RUclips, and I receive income from Warrior Trading
Can’t you open an LLC in a state in the US that doesn’t tax capital gains?
The LLC doesn't pay tax the income is passed through to you. It is your tax residency that matters. Move to a state without draconian taxes.
So I have a 9-5 that provides for my livelihood, but I also day trade at least 3 times a week. Would I be considered a trader?
Yes!
Good "prompt you" clip, I'll need to look into some Aus loops. We have Super but there a max pa limit.
A specialised accountant is something to definitely look into though
hey guys I am basically new to the trading community and I am just about to get started what would be the best trading platform to start day trading with low to no fees? Also, I've been watching you tube videos about all these trading strategies so any advice big or small would be much appreciated! Thank you!
People who are born in Puerto Rico *should* be allowed to take the capital gains exemption.
I thank there is a way around it for us puerto rica can take advatage of the act#60
Losing DOES avoid taxes. Where can I sign up?
www.warriortrading.com/trading-courses/
You mention in the ROTH IRA you still need 25k and would be subject to the pdt rule. Would this only be true for leverage or margin settlement accounts? My understanding was cash accounts were exempt from the pdt rule as long as there isnt margin. Thanks for the awesome videos
Yes you can have a Cash Roth IRA under the PDT
@DaytradeWarrior thanks for the quick response! My Cash Roth IRA is around 1k. The account does not have margins enabled. So I can only trade my cash once per day. Just wanted to be sure I can trade 5 days a week and not trigger PDT.
@@jonmarshall272 look up settlement day…
Great video. We really need videos like this. Thanks ross
What does no. 4 mean? "Profits cannot be used to contribute to Retirement Accounts"
Hi ross, could you give any examples of good EU brokers. Love your work, watching you daily.
Hey! EU traders tend to use offshore brokers like Ocean one or Trade zero!
Great content. Would you share your CPA accounting firm contact info pls? And around how much they charge for a business trading account?
Thank you
Form 3115 was one of the most rediculous tax forms to fill out ever. It seems to be a catch all form for any kind of business changing any aspect of its accounting method--the MTM election is just tucked into it. Most of it just does not apply to making that particular change.
I want to learn from you. can you help me ?
Hey I offer a full course of education for warrior members, you can check it out on the 2 week trial it includes Live stream trading with me, scanner alerts, member chatroom, news alerts and customizable charting as well as some chapters of the education in the warrior pro education portal www.warriortrading.com/pro-preview-trial/
You are so helpful and I love your channel!
Hey Ross, I’m curious to know how long the compliance review takes for IBKR if I trade above the average volume for a small cap stock. I love using IBKR with trading view and I don’t want to lose a trade bc my account gets frozen!
I think this was a bit confusing wrt wash sales. Wash sales are only relevant if you have a “net loss” for the year which you want to claim as a deduction. If you are net positive (made more than you lost from your trades regardless of when you bought and sold them per wash sales rules) then you are not impacted by the wash sale rules since you have no loss to deduct from your taxes.
I’ve seen traders who were profitable and had wash sales exempt that made them seem even more profitable. Which means they pay more in tax.
Please see my comment above. Wash sale rules apply "per trade" and what you said above is not correct.
@@DaytradeWarrior yes, Unortunately I fall into this category. I started day trading in July 24' so I will not be able to get M2M and day trader status until 25' tax year
Yes but doesn't the Roth IRA have to be open for five years before you can withdraw tax free?
yes correct
Ross if you are already in your late 60's what would you do since the IRA's do not work any more.
What do you mean they don't work anymore? If you learn how to day trade, then day trade in your Roth IRA. All of the gains within it are tax-free. It also depends on your current tax bracket. If it's high now and going to be lower later, use a traditional IRA and trade with it as well.
Can i move to Puerto Rico and live there for over a year and sell all my stocks that i bought many years ago (while in the mainland USA) that have swelled up too high and pay zero capital gain taxes? or the buy and sell both transactions should occur while in Puerto Rico?
Thank you Ross for these videos, Ross do you think it’s worth it to have a daily goal sometimes I feel like it makes me take extra risk to hit that goal if I’m a little off? hope everyone is having good weekend
can you have an M2M filing even if you dont have an LLC. Like just a regular person trading daily trying to make a living along with another full-time job?
Yes you can, and many people do. The only thing you really miss is the 401k contributions and writing off health insurance premiums.
Big bro Ross Cameron 🙏🎉🚀🚀
thanks
Would you recommend obtaining trader tax status and wash sales before filing 2024 taxes with the intentions of day trading in 2025? I am currently a warrior starter member and have been trading in the sim and plan to go live February of 2025 anything you would recommend me doing before I open a trading account (tax related)
Personally I would file mark to market accounting now and notify my brokers asap so I wouldn’t have wash sales in 2025. Then for my 2024 return I’d claim deductions as trader tax status as long as I’d spent a good portion of the year trading.
No point trying to file for it in 2024 as you just said you aren't even trading in a real acct which makes you not legally a trader tax wise 2024 in the eyes of IRS. If you start trading in Feb 25 then yes that next year you should if you find the benefits outweigh the negative tax implications etc
Can a Roth IRA be a cash account so I'm not subject to the PDT rule?
It can be a cash account yes, so you will have the ability to trade the cash balance with T+1 settlement
If you have a LLC you can avoid a lot of negatives as well.
in the case where you have elected MTM accounting and following year(s) you do not qualify for TTS because of not so day trading activity. And lets say you have a long position(s) held over a year with realized gains in that tax year, and some frequent trades with wash sales.
1 - Will the wash sale allowed rule still be applicable even though you do not qualify as a trader (TTS)?? but have MTM election made in previous years? (activity has been like a investor)
2- it's the same only account, can that long position gains be treated as capital gains since you did not qualify for TTS?
Thanks
How many % is the tax when you make 2million a year?
You really don't have to worry about wash sales until the end of the year. If you have unrealized losses on a stock in December or even maybe late November. Don't trade it for 30 days . You really don't have to switch to day trader status. Plus with day trader status I think I'm correct in saying no matter if your up or down in a trade at the end of the year. Your required to close out the trade which would suck of you have a huge unrealized gain that you want to carry to the next year and not close out
Trader Tax Status (TTS) is rather subjective, but the guidelines are generally that your trades must be less than 30 days. I think you are confusing mark-to-market accounting and TTS. TTS is just an IRS requirement before you can claim business expenses as a trader. Once you meet the TTS guidelines, you can apply for Mark-to-market accounting. In MTM if you have an open position on Dec 31, you will have to pay tax on the unrealized gain - I think that is what you are getting at.
There is an easy fix, you can have 2 brokerage accounts and claim mark-to-market for one (your day trade account) and another as an investment account where you hold your long term positions with normal capital gains accounting. I do that and have had no issues filing. You just need to be clear when you apply for MTM accounting that it applies only to your trading account.
Great info Ross, thank you
The least people can do is like and share these videos full of priceless information
Thank you!
If one is over 60 years old, wouldn't it make sense to always trade from the Roth?
Yes but you need to wait 5 years from when you create a Roth to withdraw tax free capital gains. So if you already have an account created you’re good! If not you need to wait 5 years even tho your 59-1/2 already
@@DaytradeWarrior Shucks! The price of procrastination. So when I set one up this week, I'll have to wait till I'm 69 to withdraw tax free, hence why it's prolly necessary to trade out of it and another account causing me to set up mark to market accounting this year. I trade mostly futures, so those trades are not taxed as ordinary income; it's 60:40.
Am I correct in that the only way I can write off startup expenses (warrior pro, monitors, etc) incurred in Q4 2024 without having live traded yet is to form a business (eg LLC)? Will start live trading in Q1.
If you qualify for trader tax status you can write off those expenses on schedule C. LLC is nice but not required for writing off expenses
I think there is a lot more steps you have to do in order for act 60 in Puerto Rico. Have to buy property, have to donate a certain amount to charity every year etc
The exchange rate in the DEX is lagging hard
It almost sends 9 times more, I put out vldeo
The information you give away for free is much appreciated
can you write off your monitors every year or just once at the beginning of purchase of equipment?
Just once
Computers’ useful life is five years. I wonder if you can buy a new monitor every five years and deduct that. You might want to check with your accountant.