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There is a good discussion of this in the latest issue (January 2000) of
TAS&C by Ted Tasser who is the guru of "Traders Status." Ted also has a web
site. From what I read, trader status allows you to deduct expenses on
schedule C but your "income"shows us on schedule D and no SSI 15% hit.
----- Original Message -----
From: Ketayun <ketayun@xxxxxxxxxxx>
To: realtraders <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, January 04, 2000 9:33 AM
Subject: Tax issues etc.
> Hi,
>
> I know this has been discussed before, but I am not sure what the
> outcome was.
>
> Here is my question. As I understand it, if one registers as a trader,
> then one may deduct such expenses as home-office etc., but would be
> liable to pay full Social Security which is approx 15% on income. If you
> simply declare the proceeds of your trading activity as investment
> income you are not liable for Self-employment taxes and 15% social
> security, but cannot deduct any expenses?
>
> By the way since I day-trade, securities are not held for longer than 1
> day at the most. Also when is one supposed to register as a day-trader
> if this turns out to be advantageous?
>
> Thank you in advance for all information and advice.
>
> Ketayun Rustom
>
>
>
>
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