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In your scenario, a 30k business loss (if allowed) would mean that you are now taxed on 70k of income instead of 100k. So, if you were taxed at 30% you would be losing 30k to save 9k in taxes. The IRS is very aware of fraud potential with small business losses. If you are running a legitimate business (actually trying to make money) then you don't ...


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On this page, the IRS says: Question How do I know if I have to file quarterly individual estimated tax payments? Answer You must make estimated tax payments for the current tax year if both of the following apply: You expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits. ...


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The default tax status is self-employed There are other tax statuses possible and they have their own nuances and are sometimes one directional, meaning you can't unapply for that tax status. Therefore this is one reason why people make a new company specifically for trading and consider having that company take the special tax status permanently. I have ...


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A professional is like a medical doctor, lawyer, accountant, or engineer. A professional has a professional designation administered by a government. A professional is legally responsible to the public. However, many Ph.d's are only administered by an academic institution but are certainly professional. The SEC considers anyone who buys and sells securities ...


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A person who meets the IRS definition of a full time trader can apply for Trader Tax Status and receive many business tax breaks like deduction from gross income of business expenses, employee benefit deductions for retirement plans, health-insurance premiums, MTM tax treatment (no wash sale limitation), etc. Hence, such a full time trader would be ...


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