Many of us have a main profession (like teacher, doctor, lawyer, engineer) and we do trading on the side. But I spend as much time doing market research and trading as my main profession, I want to register as a professional trader, and I want my losses to be completely deducted from my profits (rather than just $3000 per year) for tax purposes. What do I need to do and what forms or applications do I need to fill out?
I suggest you consult your tax advisor or go to this website and read their free content. https://greentradertax.com/ To better be able to control taxes, you might need an INC or LLC. Lightspeed Financial Services Group LLC. is not affiliated with this service providers. Data, information, and material (“content”) is provided for informational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities. Any investment decisions made by the user through the use of such content is solely based on the user’s independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance. Lightspeed Financial Services Group LLC does not endorse, offer nor recommend any of the services provided and any service used to execute any trading strategies are solely based on the independent analysis of the user.
A big waste of your time, unless you're extremely active, full time, and do hundreds of trades per year. Otherwise, the IRS considers you an investor.
All your losses are deducted from your profits. You can deduct up to an extra 3k against other income.
%% START with a trading notebook mine =college rule 120 sheets/240pages. THAT way \IRS audit, schedule C or no IRS audit; helps you anyway
Just forget working other mundane jobs trading is the best. And don't lose so there is no deductions.