🧾 Tax Analysis β€” 2026 LIVE = REAL MONEY

Filing SINGLE Β· generated 2026-10-12 18:53:33 UTC Β· all 4 accounts
Other income stacks under trading gains for bracket placement.
Total tax owed (LIVE)
$0.00
federal $0.00 + IL $0.00
Realized P&L (YTD)
$-141.22
929 closed trades Β· 376W / 506L
Effective tax rate
0.0%
marginal 0% fed
Wash-sale deferred
$919.54
197 events Β· Β§1091
Loss carryforward
$0.00
offset $141.22 this yr
Est. payment req'd
NO
$0.00 / quarter

πŸ“Œ Bottom line

LIVE realized a net capital LOSS of $141.22 in 2026. No tax is owed on the trading account. The loss first offsets other capital gains, then up to $3,000 of ordinary income; any balance carries forward indefinitely. $0.00 carries forward to future years.

🏦 All accounts β€” only LIVE is a real taxable event; DEV/QA/PROD are simulated paper

AccountClosedRealized P&L Short-termLong-term Wash eventsDeferred loss Federal taxIL taxTotal tax
LIVE REAL $4k 929 $-141.22 $-141.22 +$0.00 197 $919.54 $0.00 $0.00 $0.00
DEV PAPER $80k 916 $-234.28 $-234.28 +$0.00 532 $4,394.74 n/a β€” paper n/a β€” paper n/a β€” paper
QA PAPER $4k 781 +$170.31 +$170.31 +$0.00 440 $2,403.53 n/a β€” paper n/a β€” paper n/a β€” paper
PROD PAPER $4k 703 $-200.29 $-200.29 +$0.00 395 $2,337.72 n/a β€” paper n/a β€” paper n/a β€” paper
Paper accounts run identical strategies on simulated fills β€” they generate no reportable income and are shown for strategy comparison only. Simulated realized P&L: DEV $-234.28 Β· QA +$170.31 Β· PROD $-200.29.

πŸ“Š LIVE realized income detail β€” 2026

Gross winning trades
$2,460.36
376 wins
Gross losing trades
$2,601.58
506 losses
Best trade
$244.56
Worst trade
$-107.65
Short-term = $-141.22 Β· Long-term = $0.00
An intraday bot holds positions for minutes β€” by construction nearly all gain is short-term, taxed at ordinary income rates federally. Illinois charges 4.95% on both regardless of holding period.

πŸ“… LIVE monthly realized

2026-07 $-327.24
2026-08 $-134.98
2026-09 +$336.72
2026-10 $-15.72

πŸ‡ΊπŸ‡Έ Federal tax computation β€” short-term gains at ordinary rates

Other ordinary income$0.00
Less standard deduction (SINGLE)βˆ’$16,100.00
Net capital loss (no tax on losses)$-141.22
Less capital-loss deduction vs ordinary income (max $3,000)βˆ’$141.22
Net short-term gain (taxed as ordinary)$0.00
Federal income tax$0.00
Total federal$0.00

🌾 Illinois + jurisdiction

4.95%
flat rate Β· no long-term preference Β· no deduction for trading losses beyond federal basis
IL taxable income$0.00
Illinois tax (IL-1040)$0.00
Federal jurisdictionUSA
State / county / cityIL Β· COOK Β· Elk Grove Village
Account typeINDIVIDUAL MARGIN
Cost basis methodSPECIFIC_ID
Β§475(f) mark-to-market NOT ELECTED
Specific-ID lots YES

πŸ—“οΈ Quarterly estimated payments β€” federal 1040-ES + Illinois IL-1040-ES

No estimated payments required β€” computed liability is below the $1,000 threshold (or the account is at a net loss). Re-evaluate when profitable trading resumes.

πŸ” Wash-sale ledger β€” IRS Β§1091, 30-day window before & after

⚠️ LEDGER DATA-INTEGRITY FAULT (171 of 302 LIVE lots). The stored tax_state.json figures are inflated by an adjusted-basis roll-in bug β€” stored gross $-31,878.74 vs recomputed true gross $-115.15 on a ~$5k account. This page recomputes every lot from (exit βˆ’ entry) Γ— qty and reports the true figures below. Do not use the ledger's raw totals for a return; a 1099-B reconciliation is required.
Closed lots tracked (LIVE)302
Wash-sale events197
Disallowed loss (deferred into replacement-lot basis)$919.54
Recomputed true gross (this page)$-115.15
Stored ledger gross (adjusted-basis artifact β€” NOT income)$-31,878.74
A wash sale does not erase the loss β€” it defers it into the replacement lot's cost basis. The bot re-enters the same symbol within 30 days frequently, which is why the deferred amount is large relative to the account. A 31-day cooldown after a realized loss would preserve the deduction in-year.

πŸ“„ Required forms β€” LIVE account

FormPurposeNeeded
Form 8949 Sales & other dispositions β€” every closed trade lot YES
Schedule D Capital gains/losses summary β€” net short-term vs long-term YES
Schedule 1 / SE Self-employment β€” ONLY with Trader Tax Status / MTM no
Form 8960 Net Investment Income Tax (3.8%) β€” MAGI above threshold no
IL-1040 Illinois individual return β€” 4.95% flat YES
IL-1040-ES Illinois quarterly estimated payments no
Form 1040-ES Federal quarterly estimated payments no

πŸ’‘ Tax-saving opportunities

Β§475(f) Mark-to-Market election
NOT ELECTED β€” impact HIGH (if Trader Tax Status qualifies)
With TTS + MTM you deduct all trading expenses (data, VPS, subscriptions) and losses aren't capped at $3k/yr; gains become ordinary. Requires filing by Apr 15 of the election year (Rev. Proc. 99-17) β€” cannot be made retroactively.
Wash-sale avoidance (Β§1091)
197 events Β· $919.54 deferred β€” impact MEDIUM
The bot re-enters the same symbol within 30 days, deferring losses into replacement-lot basis. A 31-day cooldown on re-entry after a loss would preserve the deduction this year.
Specific-ID lot selection
ELECTED βœ… β€” impact LOW–MEDIUM
Highest-cost-lot-first realizes larger losses on losers and defers gains on winners. Already the configured method.

⚠️ Caveats & authority