If you are a full time trader and derive most or all your income from trading...do you pay taxes to the city you live in? I do live within the city. Every time I talk to my city income tax division I get a different answer. I know, talk to my accountant. But he's talked to them as well, and can't get a consistent response either. I think the issue is whether it's a capital gain or not. If you invest or trade part time, you're not liable to the city because trading profits are capital gains. But if you trade for a living, it's not a capital gain and you are liable for local taxes. Does this sound right?