You can only claim $3,000 in losses per year. So If you lose $50k this year, you can claim $3k this year, $3k next year, etc. Basically you'll have a $3k tax write-off for life.
hahahaha, you could only wish that it would be such a fair deal. Unfortunately, you cant do that. Just 3k is allowed
If your losses exceed the deductible amount, you can turn to the carryover rules. They let you use the unused part of your loss to the next tax year. If part of the loss is still unused, you can carry it over to later years until it's completely used up.
For example, assume in 2010 you were single, had more than $33,000 in taxable income, a short-term loss of $1,500, and a long-term loss of $10,500. Your 2010 deduction is limited to $3,000. But:
http://taxation.lawyers.com/income-tax/Taxes-and-Capital-Losses-and-Carryovers.html
You should also read about 30 day wash rule where if you buy and sell same security multiple times in 30 day period, your losses are not deductible even with in that year..however, if you made money doing the same thing, you will pay 1/3 of it to sam. wow..one more nice rule..wish I can write such rules for my business...
You can only claim $3,000 in losses per year. So If you lose $50k this year, you can claim $3k this year, $3k next year, etc. Basically you'll have a $3k tax write-off for life.
Edit:
The example in the above link seems to be saying that yes you can deduct all of the 47k loss from previous year if you made 47k capital gains this year. It is just that you can only deduct 3k if you made no capital gains this year. You can have an ordinary income of 200k this year but can only deduct 3k, if you did make 47k in capital gains then I think it is possible to deduct that 47k, however it still depends as it depends on whether that 47k is subjected to 30 day wash rules or classified as short term or long term capital loss.
^^^
Yes you can deduct the full amount out of profits only.
For example, in 2010 if you lose 50k you can write off 3k for 2010. So you still have a total loss of 47k. If in 2011 you Make 75k you can deduct 2010's 47k loss from it. So in 2011 you only have to pay taxes on 28k (75k - 47k).
this IS the correct outlook.. not sure what others are saying.
Or if you quit and have 100K in losses you can deduct 3K per year for 33 years.. etc..
^^^
Yes you can deduct the full amount out of profits only.
For example, in 2010 if you lose 50k you can write off 3k for 2010. So you still have a total loss of 47k. If in 2011 you Make 75k you can deduct 2010's 47k loss from it. So in 2011 you only have to pay taxes on 28k (75k - 47k).
Yeah I agree totally Philo -- amazing how these tax rules just boil down to one thing: the gov gets your money. Funny how that works.
I still have my UVXY, I got into it right around the same time you did, I think my entry point is around $13. I'm hoping to see around $17-18 before selling.
Don't the casinos have to have a valid legal reason to ban you? Or is it totally their call? How lame.
Black Jack is no longer worth the professional effort. You can only aspire to make small amounts of money (under $10k), you breach that level consistently a couple of times, they will ban you from playing it.
There were only a handful of casinos with good rules where you can still try to beat the game and when you are beating, they will shuffle the cards in the middle of the game or ban you. So, yes trading is much better than gambling.
Trading winnings are strictly reported even if you win just $1k in the whole one year period but gambling winnings are not as strictly reported even if you win 10k per day. If you win 50k in trading you pay 1/3 of it immediately to sam but if you lose 50k, you can only deduct 3k, and if you never make back that 47 k in the future as profits then you lost that money forever. One of the very unfair business deals I have seen and only possible to make such deals if you are the govt or the mafia
The poor employment report came on a day when investors were already on edge as France and Greece head into elections over the weekend. The outcome of those elections could have a significant impact on the markets because a leadership turnover in Paris could change the way Europe responds to its debt crisis. The elections in Greece, which recently restructured its massive debt load, have the potential to set off even more volatility.
I am wondering about the possibility of seeing SPY 135 or 134.5 either on Monday or Tuesday. Looks like pretty good chance of that happening.
Some of you may be able to buy UVXY in the after hours now for a possible 10% or more gain on Monday or Tuesday.
Just noticing some of this tax talk. I started out trading this year with $1750, worked up to about $2500, then lost about all of it. If I don't trade anymore for the rest of the year, are you staying that I'm able to write off 100% of my $1750 loss from my regular income tax? I was hoping to just be able to write off that much from my income so I don't pay tax on it, but if I can write all of it, that'd be frickin sweet 
Although hoping to refund and do better round 2, so hopefully I won't be able to write it off.
For people with tax questions, i wouldnt take advice from a forum as the be all end all answer..
basically GO TALK TO A CPA.....its worth it than doing it wrong and then being audited.
But on a simple deduction and losses question, what was said above is correct..
If your trading alot of options or have a high volume over the year its best and really, why save 200 and have the inherit risk of a mistake on your own account rather than the CPA who is then responsible for fixing said mistake and fighting on your behalf. Form experience and having the IRS come back this is the best route in my opinion.
Then I shall continue learning with another $1250 this year for a worst case of net $0.
For people with tax questions, i wouldnt take advice from a forum as the be all end all answer..
basically GO TALK TO A CPA.....its worth it than doing it wrong and then being audited.
But on a simple deduction and losses question, what was said above is correct..
If your trading alot of options or have a high volume over the year its best and really, why save 200 and have the inherit risk of a mistake on your own account rather than the CPA who is then responsible for fixing said mistake and fighting on your behalf. Form experience and having the IRS come back this is the best route in my opinion.
I had this on my to-do list, then being busy with school, work, and losing my ass in a choppy market I completely forgot. Something I gotta get taken care of.
I'm pretty sure he's talking about a game called ultimate texas hold em'. Not regular hold em. You play against the dealer on this one.
All this talk about Hold'em makes me miss taking all my friends' money. Used to do a little online play, but the damn site was so sketchy about withdrawing money (asked me to fax copies of my driver's license and SSN card), that I just said the hell with it and gambled it away.
EDIT: Just checked their site and either the law changed or it was illegal all along. http://bodog.com/
I'm pretty sure he's talking about a game called ultimate texas hold em'. Not regular hold em. You play against the dealer on this one.
Isn't that (Texas Holdem) completely different from Blackjack? I've played some Blackjack in Vegas and a few other places and like you said you play against the dealer.
Isn't that (Texas Holdem) completely different from Blackjack? I've play ed some Blackjack in Vegas and a few other places and like you said you play against the dealer.
Yes hold em is a game against other players. blackjack is a completely different game against the dealer.
Ultimate Texas hold em is against the dealer and a separate game from both of those.
