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EDUCATION CENTER Everyone who spends some or all of their time in front of a computer, trading stocks or other instruments, might think they qualify as a trader. However, the IRS may think differently. If you trade all day, every day, you shouldn't have a problem gaining
trader tax status. However,
if you trade only part-time,
or if you consistently lose money,
you may have problems with the IRS. Furthermore, there are additional rules and restrictions for non-U.S. residents, pattern day traders and traders who trade with a proprietary firm. And, traders who choose to form an entity also have to deal with different rules.
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