How about taxes in these keep after calculations?

Hey, guys! I’m sure all of us would love to know what our subscribers returns net of taxes are on an estimated basis. Mainly there are certain systems on this site…ahem… that pretty much would lose substantial amounts when you factor in taxes. Mainly I wanted to point out wash sales here. These would put the high cost high frequency, and, yes, Ross, low APD systems negative. Anyone agree with needing this statistic!

Obviously IRA accounts do not matter.

you know there are not only US in the globe and simulation of taxation for every country is something not doable. More interesting might be simulation of interest on margin for stocks systems, because right now costs of margin usage is 0 at C2 as I understand.


More like the excessive amounts on commission make up for it.

I don’t think so. Margin is expensive and it might cost more that commissions on a quick trade.


I do not see how this would work. Some people are in different tax brackets, different countries, possibly trading IRAs (how would you know who?). Some are professional traders. It differs across Stocks, Options, Futures, Forex.

Mainly this post was about wash sales.

that pretty much would lose substantial amounts when you factor in taxes.

Mainly this post was about wash sales.

Could you elaborate it, pls? How profitable system can lose without wash sales? Claiming of wash sales is participation in deduction and indeed there is some optimization for us residents.

However, there is nothing related with trading system.


Pretty much, if you sell at a loss, and buy that security, or sell short, the same security substantially within + or - 30 days, you cannot deduct any of the loss and pay on all of the gain. So, if you lose $35,000, and you make $15,000, there is no off-set of the loss. 100% of the next trade is taxed. I’m surprised no one pointed this out before.

I’m surprised no one pointed this out before.

I think the topic wasn’t brought up, because any accountant who is familiar with trading will claim wash sales if it’s possible.

The issue is interested from point when trading system includes expectation of wash sales. If you look at Tango most of trades with 10-40% loss per position are applicable for wash sales claims. :wink:

Unfortunately it doesn’t help to non-us residents so I don’t count it as part of the system.


Yeah, I can see that. But it is still an issue in the States.

I agree to FinancialScientist, the wash sale topic can be a big issue for users in the US. I got hit with wash sales and would like to know how other users handle this. Did anyone had problems with the 8949 from IB? I also think that C2 could add a line in the statistics regarding wash sales. Even though there are many users from around the world, I think that this would help many US users to be alarmed about the nasty tax surprises (specifically, when a strategy generated some losses and these losses are topped with some additional tax payments - gggrrrr).