US Taxes for Traders and Investors – Overview

Study Notes:

Interest

Savings and bond interest
Certificates of Deposit and Commercial Paper
US Treasury bills, notes and bonds
Muni interest and the AMT
Amortization of market premiums and discounts
Original Issue Discounts (OIDs)

Dividends

Ordinary Dividends
Qualified Dividends
Dividends from Money Markets
Dividends from Mutual Funds
Reinvested Dividends – including Automatic Dividend Reinvestment Plans (DRIPS)
Payments in Lieu (PIL) – received

Capital Gains – Stocks and Mutual funds

What are tax lots?
Tax lot methods
Holding periods
Tax rates

Capital Gains – Bonds

US Treasuries
Corporate Bonds
Bond discounts and premiums

Capital Gains – Special Considerations and Products

Calculating basis – what to do when a security isn’t covered
Wash Sales
Index Options – IRC Section 1256
Commodities

Foreign Exchange gain and loss

Publicly Traded Partnerships and ETF Trusts
What are they (definition)?
Why are they different and how does this impact taxation?
Distributions (Dividends)
Return of Capital
K-1 information
Cost Basis for gain and loss on sale
New Section 199A 20% business income deduction

Net Investment Income Tax

History
Who it impacts?
What income is subject to this tax?
Special consideration for partners/businesses

Trading Expenses

Payments in Lieu (PIL) – paid
Interest
Dividends
Margin interest
Stock borrow/loan fees
Advisory fees
Account fees

Tax status – Are you an investor or a trader?

What is an investor?
What is a trader?
Requirements
Advantages/ Disadvantages
Tax and Audit considerations
Section 199A 20% deduction

Retirement Accounts

Types of Accounts
Tax Considerations