I came across a CPA's web site Traderstatus.com. It really has lengthy articles on how to claim "trader status". My understanding of the subject is: as a trader one can deduct all the expenses that you may not be able to deduct as individual, can contribute to pension plan. That's it. But you pay tax as ordinary income, even on the long term trades. This is specially important for futures traders. Futures are treated 60% long term. But as trader you report every thing as ordinary income. Under what circumstances would you have to pay FICA. There are many "professional traders" here. I would appreciate if you can shed some light based on how you do things in your practice. Thanks.