Now that we are in the last month of the 2017 tax season, we thought we’d compile a list of the most common questions day traders ask!
Question 1 – What is trader tax status and do I qualify?
Trader Tax Status is a classification achieved through meeting certain criteria established by IRS Topic 429. With Trader Tax Status the IRS regards you as an active trader and all of your gains and losses become ordinary. Additionally, you can elect Mark-to-Market Accounting. There is no one size fits all approach as each traders facts and circumstances are different. If in doubt please consult a professional or schedule a consultation with us, we’d be glad to help!