I’m not sure if this is the best sub for my question, but I’m hoping there’s someone else who has been through this.
I’m 32 and halfway through 2018 I started heavily trading options and ended the year with around 36k in gains. I’m trying to prove out over a several year period consistent gains with the goal of “retiring” at 40 from my day job and trading full time. For 2019 Ive averaged about 5k/mo to date, but my goal is $6,500/mo, so my tax bill for 2019 will be significantly higher. As 2018 was my first year heavily trading, I’m concerned I’m not doing it in the most tax advantageous way. I just plugged all my 1099s into TurboTax and now owe 10k.
How can traders reduce their tax bill? Would it be better to trade under a business? Any advice to lower my tax bill from others who trade would be appreciated.