Never tell a broker you trade for a living?

Discussion in 'Professional Trading' started by turkeyneck, Jun 4, 2019.

  1. newwurldmn

    newwurldmn

    If you claim trader tax status you are by definition a professional in the eyes of the exchange. This was verified by an accountant who specializes in trader tax law.
     
    #11     Jun 5, 2019
  2. Robert Morse

    Robert Morse Sponsor

    I do not agree. The exchange feeds and their requirements for the exemption and the IRS do not have the same standard.
     
    #12     Jun 5, 2019
  3. Accountants are not qualified to opine about exchanges.
     
    #13     Jun 5, 2019
    murray t turtle likes this.
  4. newwurldmn

    newwurldmn

    This is what Green told me. If I switch to trader tax status I will have to pay professional data fees.
     
    #14     Jun 5, 2019
  5. sprstpd

    sprstpd

    I was very skeptical to about how I was supposed to be classified (see previous thread), but it comes down to the fact that a sole proprietorship is forced upon you by IRS code in order to fill out Schedule C. But in the eyes of the exchanges, you are just an individual trader and have no associated entity.
     
    #15     Jun 5, 2019
    GRULSTMRNN likes this.
  6. Robert Morse

    Robert Morse Sponsor

    Happy to talk offline and explain.
     
    #16     Jun 5, 2019
  7. newwurldmn

    newwurldmn

    When I worked for an investment bank I was considered a professional and my broker delayed my quotes for my personal brokerage accounts.
     
    #17     Jun 5, 2019
  8. sprstpd

    sprstpd

    I think there are separate rules for people who work in the financial industry. I would think Question 4 on that list is meant to cover that.
     
    #18     Jun 5, 2019
  9. Are there any advantages in telling the broker that one trades for a living full-time?
     
    #19     Jun 5, 2019
    murray t turtle likes this.
  10. Robert Morse

    Robert Morse Sponsor

    We ask for your employment. You just have to say self-employed trader if that is accurate.

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    #20     Jun 5, 2019