 Uncle Sam What's up money gigs mr. V here welcome to another video guys so into this video we are going to talk Uncle Sam, so if you don't know what that means. I'm talking about taxes as investors. There is tax implications with what we do Investing so before we get started guys if you're new to the channel We talk about how to earn money how to save money how to invest and build wealth So if that's something that interests you go ahead and hit that subscribe button and the notification bell So you don't miss out on your content. So I am not a professional Tax guy. I'm not claiming to be one I'm simply sharing with you guys my experience and what I'm doing as an investor as a trader To secure my taxes. I want to put that out there make that very clear. So don't take this Just go and execute take it just go do some research before you execute and if you have no idea about taxes Definitely talk to you to a tax professional before you make any mistakes and blaming on me. I'm just telling you my opinion So now that that's out of the way, let's talk about it So as investors when you invest there is two types of investments that you're going to you have short-term investment Which means that you buy and sell stocks Within the space of a year and you have long-term investments Which means that you buy stocks and hold them over a period of a year and the reason why I'm Mentioning those two is because there's separate tax implications for those two So in this case if you are investing in buying and selling stocks Let's say within the period of a year, which is short-term investment And then the way you are going to be taxed is just going to be a regular income tax So they're gonna just consider an income. So I'm going to use a hypothetical example here So if you are let's say a 25% tax bracket and you day trade You buys you buy a stock on Monday and sell it on Monday and make profit or buy on Monday and hold it for six months And so they make profit or buy on Monday and sell it on Friday and make profit all those movements As long as you don't hold it for over a year. Let's consider You know short-term trading and in that case you'd be taxed at your exact tax bracket So just take that money whatever money you make again Like I said if your tax bracket is a 25% and know that they're gonna tax you at that particular rate But again, we we have a progressive tax system here in the United States So if you have a day job that you make say $100,000 and then you have or let's say $50,000 in profit from day trading They're gonna combine that so your income is going to be 150,000 dollars and your tax bracket is going to move Because you make so much money. So that's just something But if you hold that if you buy an asset and hold it for let's say over a period of a year You buy it on January 1st and sell it on January 2nd the next year at that point That is that would be taxed as capital gains, which is relatively Lower tax than your short investment. So in that case capital tax gain will probably something like 15% It depends again on your your combined income But usually you'll get somewhere between 12 and 20% not as high as Your short-term investments once you make profit. So Then the other thing that I want you to be aware of is the fact that if you trade more than 30 hours a week Or if you are a professional trader, here's what I want you to do with the IRS You can get work called a professional trader Designation so that way they'll know exactly who you are They hear the implications Will you just do regular trading and make profit and just write it off as income Do what you do is you can write a maximum of three thousand dollars of as losses So if you don't have that professional trading Designation you can only write three thousand dollars off in losses But if you are designated as a professional day trader and then you can write everything You can write pretty much whatever it is But in that case they're considering that you're trading as a full-time professional That is your job and then if you get to that stage I might mean how my recommendation would be choose register an LSE and Operator as a full-time business. So your computers and everything that you buy would be Under your business and at that point, you know, you can write everything off again But the only thing is that cap of three thousand dollars that you get when you are not a professional trader that it now extends to You know unlimited amount so you can write pretty much anything. So that's just the implications again for tax So quick recap here guys So if you are just trading and making profit and you're not a professional trader Know that you can write a maximum of three thousand dollars of losses in your account But if you are a professional trader and then you can write on limited And again, if you think that you're trading more than 30 hours a week My recommendation is that stat and LSE and run it as a business again So you can write off everything, you know where you where you do your trading the space in your room the computers that you buy Meetings that you have if you buy any software Like scanners and everything your subscriptions that you use to keep track of trading all that stuff You can absolutely write them off. So that is the tax implication again for just simple people that are just Investing and make a little bit of profit Know that that's just going to be added to your income and it's going to be taxed as you know your income tax And that's about it. There's no other Implications associated with that. So and that's what I'm doing. So if you want to be taxed more So as a professional then you have to decimate yourself as a professional day trader and get that title And then you can pretty much write everything that you lost In in your account. So that is my take let me know the comment section What do you think about this? Did you think that taxes for investors are a lot complicated or you think it's a little bit simple now that we've talked about it? Let me know in the comment section again If you're new to the channel we'll talk about how to earn money how to save money how to invest and build Worth and if you're looking to get started with investing we both currently running a promotion where they give you two free stacks When you open account and deposit a hundred dollars to get you started, I mean two not one two three stock So I'll put the links in the description below you can definitely go check them out And that's always guys always take profit and stay motivated