It Pays to Think Ahead and Plan Ahead

Recentely we had new client who had a $250,000 capital loss carry forward, plus a $150,000 current year capital loss. Also, a $300,000 IRA early withdrawal. Their tax bill is $80,000. A note in the tax documents says “I hope you can use my trading loss to offset my IRA withdrawal. I want to avoid the $3000 limit.”

The answer is clearly NO. Sadly, had they made an MTM election either one or two years ago, the answer could have been yes. This solution was so simple with some planning and consulting an expert. We hate to see things like this happen when clients haven’t consulted an expert.

Dave LongOctober 5, 2026Day Trader Business and Tax Tips

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Day Traders Taxes LLC
1760 W 2100 S #27052, Salt Lake City, UT 84127
Phone: 801-747-5760 | Email: info@daytraderstaxes.com

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