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Showing results for tags 'taxes'.
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@mukundaa asked: One of the major benefits of Trader Tax Status is that you can deduct business expenses. For a trader, this can include internet service, margin interest, software, and trading information services, among many other things too. For me, I wrote off the cost of Option...
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Tax Efficient Trading Part II: Capital Gains Deferral
Jesse posted a article in SteadyOptions Trading Blog
I’ll also continue to assume a 32% tax rate for short term gains and 15% for long term gains. Writing puts on 1256 option contracts makes 60% of the gains Long Term Capital Gains, but those gains are fully taxable every year. This makes an 8% pre-tax return a 6.26% after-tax return. With... -
Tax Efficient Trading Part I: The 1256 Contracts
Jesse posted a article in SteadyOptions Trading Blog
This is an advantage compared to stock and ETF options where realized earnings are reported as short term gains unless the contract is held for more than a year. In this article, I’ll provide a simplified example to illustrate how much of a difference this could make over the long term for someone p... -
The Magic of Compounding, and the Tyranny of Taxes
Jesse posted a article in SteadyOptions Trading Blog
If you could double a dollar every year, for 20 years, how much do you think it would be worth? Before glancing down, I'd really encourage you to take a guess first...So for example, I'm saying: $1 End of year 1. $2 End of year 2. $4 End of year 3. $8 And so on...