If a trader is successful and trades for his/her own account only (from home), what is the advantage of declaring "trader status" for tax purposes. I realize that expenses are 100% deductible, but an at-home trader might not have a lot of expenses plus trader status means that the trader is subject to FICA taxes and all trading income is ordinary income. Perhaps one advantage is that more money can be put away in a tax-sheltered retirement plan? Any other reasons for declaring "trader status"?
ive always wondered how much of your "home office" can be written off and taking friends i mean other traders out for dinner