I have about 100k in a taxable E-trade account. I'd like to trade stocks often (even daily) without triggering a taxable event on each sale that I profit on. Is there any way to do this other than slowly establishing an IRA by transferring the yearly allowed limit (I think it's 7-8k this year?). There is no way I can set up an account to day trade without incurring capital gains on each profit, is there?
The fear of capital gains tax on each sale I find is really restricting my flexibility when it comes to trading, so I'm looking for a solution.
Thanks,
Trading without Capital Gains Tax on Each Sale
byu/Naive_Bat8216 instocks
Posted by Naive_Bat8216
8 Comments
Im in the same boat I will owe about 10k In tax this year so far. But think about it positively, the better you do the more you pay who cares.
What kind of question is this? There are two certainties in life, death and taxes.
“There is no way I can set up an account to day trade without incurring capital gains on each profit, is there?”
No, there is not a way to do so.
If you sell for a profit, you incur capital gains tax.
If you lose all your money you don’t pay any taxes.
Make an E*Trade Roth IRA and move money there. You’d take penalties if you withdraw it though.
I’d you’re looking to day trade, don’t worry. There won’t be any profits to pay taxes on!
Day trading is exactly what short-term capital gains tax is supposed to be tapping into
There’s no way to do that in a taxable brokerage account