Day traders and long-term investors may not always share similar trading strategies, but they do have one thing in common. As investors, they need to get their taxes right, even if they have to take different paths to covering their tax obligations.
“We’re seeing huge growth with U.S. investors,” said Lisa Greene-Lewis, a certified public accountant and tax expert at TurboTax. “Currently, there are 21 million investors across the country, and 3.5 million of them are millennials. Whether you’re investing bit-by-bit using apps like Robinhood or are taking a long-term approach as a retirement investor, you’re going to have to deal with tax issues.”
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Take day traders, for example, who specialize in investing over a short period of time.
“Day traders are taxed differently than long-term investors,” Greene-Lewis tells TheStreet host Gregg Greenberg in this special video series with TurboTax. “They’re taxed at their ordinary tax rate, whereas long-term investors get a tax break. The latter group is taxed at capital gains tax rates, which could be between 0%-and-20%, depending on an investor’s annual income.”
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“We're seeing two thirds of millennials are trading at least monthly, and many other Americans are focused on long-term investors,” Greene-Lewis said. “No matter what strategy an investors, we make it easy to import your transactions into TurboTax.
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