What do You Need to Know About Day Trading Taxes?

by Toby Mathis

June 15, 2021

Day Trading Tax Tips & Strategies

In this episode of Tax Tuesday, tax attorney Toby Mathis, Esq. and CPA & Tax Director at Anderson Business Advisors, Jeff Webb, bring tax knowledge to the masses and answer your tax questions LIVE!

5:28 – Does day trading cause a higher tax consequence than long-term investing?
9:53 – If I own a property and I owe back taxes, can the government take it? If I die, can they take it?
19:07 – Can I rent a house owned by one of my LLCs? If so, do I have to pay rent to that LLC?
21:40 – How does rental income get taxed?
27:10 – I trade futures four to five days a week and never hold overnight. Would I be better off to move my trading accounts into a Wyoming LLC taxed as a C-Corp.? I had even considered moving to Puerto Rico for the mandatory time per year to capture the tax benefits.
33:00 – My 2 sons (college age) are LPs of my retail space rental LLC. Do they have to pay self-employment tax if they receive rental income as LPs or as GPs?
41:26 – Does the IRS allow you to defer and not take depreciation? Our group of investors do not want or need depreciation. Can we not take it and wait to take it in the year of sale? 45:12 – How is staking crypto taxed? Is it taxed twice? If it is taxed as income but I never sell it, how would I afford to pay tax on it?
52:28 – If I’m doing a 1031 exchange, can I pay down my mortgage on the sale property to avoid boot? For example, the current loan on the relinquished property is $204,000. New loan on replacement property is $194,000.
54:54 – Can solar tax credits be used 1 to 1 against capital gains? So the money you pay out is at least going towards a product that you own?

As always, take advantage of our free educational content and every other Tuesday we have Toby’s Tax Tuesday, another great educational series. Our Structure Implementation Series answers your questions about how to structure your business entities to protect you and your assets. One of my favorites as well is our Infinity Investing Workshop.

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Author Bio

Toby Mathis, Esq. ~ Founding Partner, Attorney, Author & Business Tax Expert.

Toby Mathis is a founding partner of Anderson Law Group and current manager of Anderson’s Las Vegas office.

He has helped Anderson grow its practice from one of business and estate planning to a thriving tax practice and national registered agent service with more than 18,000 clients.

In his work as an attorney, he has focused exclusively in areas of small business, taxation, and trusts. In addition, Toby was the past director and host of the longest-running local business radio program on KNUU in Las Vegas “The BOSS Business Brief”.

He sits on the board of directors for several companies and was recently appointed to the local board of Entrepreneurs’ Organization, a worldwide association of owners of successful businesses. He has authored more than 100 articles on small business topics and has written several books on good business practices, including first, second and third editions of Tax-Wise Business Ownership and 12 Steps to Running a Successful Business.