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IN THE MEDIA: CYBER TRADER

Business traders form entities to achieve maximum tax breaks. Traders who do not conduct their trading through an entity can benefit from business-deduction treatment (and IRC 475 mark-to-market accounting), but they usually need an entity to deduct retirement-plan contributions and health-insurance premiums. Although an entity does not deliver business tax treatment (a trader still must qualify for trader tax status), it does reduce your chances of an IRS inquiry.

Click here to read Robert Green's article on entities for traders.
An edited version of this article will be published in the April 2007 edition of CyberTrader Trader Digest.

Robert Green has contributed many other articles to CyberTrader Trader Digest. Just search their site.

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