EDUCATION CENTER
GTT RESOURCES: TRADER TYPES

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.

Chen vs. IRS - an important new case.
Chen was a part time and part year trader and he lost his case for trader tax status. Learn how to win yours! Click here for an article by Robert A. Green, CPA along with an RIA synopsis of the tax court case.

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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