Paying the least amount in taxes

[bcochran0 0]

Pretty basic question, do day traders simply pay the ~30% tax rate on gains? Is there ways to pay less?

[Bailey Nevener 83]

Yes.  By putting your money into an S-Corp and paying yourself as an employee and cashing out only what you need to live.  Also if you can successfully have Trader Tax Status you can count your losses as regular losses rather than being capped at 3,000 that rolls over every year.  I’m sure there’s more, but I’m not sure of what else off of the top of my head.

[zulkafil 38]

You can save more with Trader Tax Status. You can show all of your losses but getting the trader tax status is not easy.