- Imagine an individual trading account for 2018 fiscal year increased from ~$100K to ~$200K
- Total amount of trading transactions were at >~$20M
- Imagine for a married couple with another individual income of ~$200K, thus a total of ~$300K total household income
TurboTax seems to calculate ~$1.3M in tax debt for California only. Probably, it might be due to some errors/parameters/tax brackets. I'm also guessing this account would qualify for a pattern day-trader, which might have tax benefits.
What would be approximately the fair tax estimation for California and/or Federal for this scenario, maybe a rough range, if possible?
Thank you so much for your answers/views in advance.