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US Taxes for Traders and Investors – Overview

Lesson 1 of 10

Duration 7:17
Level Beginner

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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  

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4 thoughts on “US Taxes for Traders and Investors – Overview”

  • MAURO MARTINS

    Hi, do you have any suppport to Brazilian Incime Taxes?
    Thank You.

  • Ray P.

    Would love to see an updated version of this video for 2023 or 2024.
    Thank you IB.

    • Interactive Brokers

      Hi Ray, we appreciate your question. This will be added in the New Year!

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Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.

Disclosure: Tax-Related Items (Circular 230 Notice)

The information in this material is provided for informational purposes only and does not constitute tax advice and cannot be used by the recipient or any other taxpayer to avoid penalties under any federal, state, local or other tax statutes or regulations, or to resolve any tax issue.

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