How Would Having 15+ Trades Per Day Effect My Tax Process?
Hi! New trader here, I've been tweaking a strategy with papertrading for awhile that consists of many small-profit trades instead of the 3 or 5 moderate-profits that I see people go for usually.
This strategy has been profitable so far, but I've got questions relating to the tax end of things.
So, I did a 1099-B for a couple short term gains a few years ago and my tax person essentially flipped through every single transaction in the summary that my brokerage gave me that year, which was only like a dozen trades altogether.
If I'm doing something like 15-25 trades per day though, that's thousands of transactions by the end of the year. how would one go about documenting that income for tax season? Would that amount of trades make the process more complicated/expensive? Is there a magical tax fairy I can hire? Any insight helps, thanks!
Posted May 18, 2022, 7:21 PM UTC