Hello All, Last year (2019) I setup an llc (s-corp) and had trader status for my filing. I usually day/swing trade. This is my full time job and plan to continue this in future as well. This year in 2020, I had more than 1500 trades & huge $volume as well but this was concentrated in the first half of 2020. In the second half, i have very few trades as was stuck with my capital, had margin as well & did not wanted to take loss. Now my question is, with this information will i be able to claim trader status this year as well? Last year I had a CPA do my tax filings but this year i am not sure if want to use him as he is very costly and i have huge loss as well. Any advise will be greatly appreciated.
Guys, I intend to ask IRS for Trader Tax Status in December and intend to do so myself but I’m having a hard time finding where to send it. Does anybody know where and how I send that request? Where do find the appropriate address or email or what have you? I live in Mass.
Now that they got rid of the carry back on losses and made it carry forward only they killed the MTM/trader advantage IMO. Can only carry it forward and write if off against future income. Bottom line if you took a major loss in 2021 it was literally the worst possible time to do so due to the above carry back laws that changed. Miserable pricks…
Get a qualified tax accountant. It is harder to get trader status thank you think. A tax preparer, I read on the internet----do not remember who it was, said that what one should do is have other businesses aside from trading then, you can deduct losses. Like an indirect approach to gain trader tax status. Ask your accountant how it is set up and done.
I don't have any conflicts. Day trading is the only thing I do. Once earnings season is over (next week) I intend to apply for TTS myself. I won't work with out of state accountants so I wish there was a tax accountant in Massachusetts that already filled tax returns for a client with TTS already granted. Anybody?
You do not "ask" or "apply" for TTS. There is nothing to "send" nor anywhere to send it. You qualify for TTS or you do not, and you complete your US tax return accordingly. If you file your tax return believing you are qualified for TTS, and the IRS does not agree, you will be notified. https://greentradertax.com/how-to-be-eligible-for-substantial-tax-savings-as-a-trader/