Benefits to Active Traders

Active traders benefit from generating capital gains instead of ordinary income for two reasons:

1. IRS capital gains taxes are not paid until the security is sold and a profit is realized, so an active trader can time the sale of the security based on whether they want to claim a capital gain or loss. However, an investor has no control when interest and dividends are distributed
2. Certain types of capital gains are taxed at much lower rates than ordinary income. For example, long-term capital gains are typically taxed at a lower rate to encourage investment in the economy and entrepreneurship.

As each type of capital gain has a different tax treatment, successful traders often select their investments and time their trades to produce specific tax results. TradeLog™ offers the active trader an automated way to log all their executed trades and run quick, concise reports that allow them to keep a handle on their capital gains and losses throughout the year.

Learn More... Types of Capital Gains

^{Please note: This information is provided only as a general guide and is not to be taken as official IRS instructions. Armen Computing Ltd. does not make investment recommendations nor provide financial, tax or legal advice. You are solely responsible for your investment and tax reporting decisions. Please consult your tax advisor or accountant to discuss your specific situation.}

• Capital Gains
• Calculating Capital Gains
• Benefits to Active Traders
• Types of Capital Gains
• Short-Term Capital Gains
• Long-Term Capital Gains
• Short Sales
• Wash Sales
• IRS Schedule D
• Mark to Market
• Which Form to File?
• Brokerage Reporting
• Common Misconceptions
• Options
• Futures
• Mutual Funds
• Dividends