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Raymond Raffurty wrote:
>
> bruce guenard wrote:
>
> > Gents
> > The practical question in my mind is "Is there a web page out there
> > that helps the trader understand how to qalify as a "trader" in the eyes
> > of the IRS?" (all expenses on Sched C, all profit and loss on Sched D,
> > no wash sale rules). I've seen an out of date book on this last year.
> > Would appreciate any assistance.
> >
>
> Hi Bruce,
>
> I am not a tax expert but I can assure you that if you have ANY
> other income, even a part time job, the IRS will disallow trader status.
> Also you will have to demonstrate a very high number of trades per year in a
> good sized account to qualify.
>
> As for filing both Schedule C and D, I believe you file one or the
> other but not both. Also as a professional trader you would be required to
> pay the "self employed tax" which is not taxed on investments.
>
> Good luck and good trading,
> Ray Raffurty
I am not a tax expert either, but why not set up a business. If you
trade futures/futures options then why not regeister as a CTA (detaisl
from NFA at 800-621-3570) and manage your own money. If it is
securities, why not set up as an RIA? But don't take my word...bettr
talk to a lawyer.
Next option is to negotiate with your broker. You cna get most services
"free" if you are doing the volume and generating the commission
revenue. As a broker I would gladly work out such a deal with anyone.
You may pay more in commissions (which are in essence deductible).
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