Taxes/Trader status

Discussion in 'Taxes and Accounting' started by Honda, Mar 23, 2002.

  1. Honda


    I've read the requirements to claim trader status etc. Apparently the IRS frowns upon people doing this when they have another full time job. I have a full time job, but work nightshift and trade during the day. (I have a modest profit this year & average 3 or 4 trades a day ). Maybe someone who has some experience with tax laws can offer an opinion. Trader or Investor? Thanks.
  2. there is no set answer for is a grey area in the depends on a lot of things.
    i would say go for it and be prepared to argue your case if by some slim chance you get audited.
  3. Honda,

    Take a look at the following publication from the IRS. Pay particular attention to the bullet points and then decide for yourself whether you meet these requirements or not.,,i1=50&genericId=12278,00.html

    There are other informative publications on the IRS site, just do a search for "trader status" on and you should find several that look at different aspects of declaring trader status.