Does Swing Trading Qualify As "Trader"?

Discussion in 'Trading' started by igum, Jan 2, 2003.

  1. igum


    I want to do more swing trading, making only about 2-3 trades a week. Do swing traders qualify as "trader" for tax purposes? I'd still be scanning and analyzing stocks every day, just not executing trades unless I feel very confident in taking a position. Thanks.
  2. smells pretty fishy igum :D
  3. i would think you would need to trade at least once a week to have a chance to pull it off. if you do 2-3 should work ok if you dont have another job.
  4. The IRS test are extensive and essentially require that trading be your full-time avocation. If you are employed full time in another job they will probably disallow any deduction. The site does have some good info on the subject.
  5. pug


    So, I can't elect mark-to-market with a full time job?

    That means, if I lose more than $3000, it won't be deductible, right?

    I did think, however, that the IRS allows investment publications and some costs associated with those investments (fees, etc.) to be deducted, even if held short term.