If I sell a stock and then immediately buy another with that money, do I have to pay taxes on capital gains? If I do this every day like in day trading, is it practical to keep track of all taxes I have to pay? Can't just pay taxes when I withdraw the cash from my trading account?
Look into wash sales adjustment though - you have to push back losses if you rebuy the same stock after selling within 30 days. Hard not to be affected by that if you're day trading.
Not just same I believe it’s relevant even for substantially similar company
"Substantially identical", not similar. So GOOG/FB is fine, but SPY/VOO is not.
Normally, brokers adjust for trading fee and wash sale losses in end of year tax statement. If they don't, get a new broker.
Yes, if you sell a stock for a gain and immediately buy another you will owe taxes on the gain. You pay taxes regardless if whether or not you withdraw money from the account (unless you are trading in an IRA/401k). Your brokerage will give you a form at the end of the year with your net gain/loss with which to do your taxes. Helpful hint: if you don't know the basics of how taxes work, you probably don't know enough about stocks to be day trading.
I never day trade, I'm usually in for the long term, but sometimes I make a few trades in a single day for rebalancing.
You pay taxes for gains on every transaction.
There’s no special treatment for taxes on day trading vs other short term trading.
WRONG WRONG WRONG
@aJb52Ys is right. Day trading is a form of *short term* trading
If you're making a lot of money you should make tax payments on your profits.
You get a 1099 from the brokerage with your trades itemized and P&L for the year. All P from day trading will be short term CGT, and you pay on tax on the net profit, adjusted for long/short term.
Tech Industry
2d
2833
Google is the most bs company to get into as SWE
Tech Industry
Yesterday
1178
Enraged that kids prefer KPop to Bollywood. Installed cams in their rooms.
Tech Industry
Yesterday
391
Best LCOL or MCOL city?
2024 Presidential Election
Yesterday
1294
Biden to hand out green cards to 4000 illegals per year
You pay taxes at end of the year. You don’t have to keep track. Will get a statement from the brokerage end of the year which does all the paper work.
Yeah, no, this is all wrong