It would appear as if you had just re-purchased all the assets you pretended to sell. Usually, investors can deduct just $3,000 or $1,500 in net capital losses each year. The IRS considers day-traders to be self-employed. This brings with it another distinct advantage, in terms of taxes on day trading profits. Traders eligible for trader tax status deduct business expenses, startup costs, and home office deductions. This means you must pay the portion of Social Security that an employer normally pays for employees, as well as Medicare taxes that an employer normally pays.