|
PureBytes Links
Trading Reference Links
|
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 I've seen an out of date book on this last year.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 CAP(and I would explore this in detail with your tax advisor
FIRST) but you can set up as a CTA (futures and futures options) and/or
a RIA (securities) and manage your own money. This seem like a
legitimate business expense to me.
Next approach is to work a deal with your broker to provide you with
quotes etc. for an increase in your commission costs (your gains/losses
are calculated after deducting for commissions). As a broker I would
work such a deal for any of my clients if they requested...as long as
the revenue was there to justify.
GM
|