TRADERS
GUIDES: TRADER TAX STATUS & MTM: WHAT'S NEW

What's New This Year

An in-depth new guide section on "Case Law"

The current trader tax laws, including the Internal Revenue Code, IRS regulations, revenue procedures, and publications (all included in this guide), do not sufficiently define whether a taxpayer is a trader or an investor. Research Institute of America (RIA), a leading tax publisher states that "whether a taxpayer's investment activities are sufficient to constitute carrying on a trade or business requires an examination of the facts in each case."

Notice the term "each case", which refers to "case law"; the entire collection of published legal decisions of the courts which contributes a large part of the legal rules which apply in modern society. If a rule of law cannot be found in written laws, lawyers will often say that it is a rule to be found in "case law".

In our "Case Law" guide section, we summarize existing case law for traders and list all the relevant cases. We include each case in it's entirety and we added our insight, analysis and observations.

We have noticed a disturbing new trend in IRS audits of traders. The IRS is attempting to deny "money-losing" and/or "part-time traders" business loss treatment (trader tax status) based on their interpretation of case law and how they apply that case law to the trader being audited. It is important that traders understand case law before they claim trader tax status and to use it effectively if need be in an audit. Without this key guide section, a trader is vulnerable to IRS attack. Don't let the IRS make their case for disallowance by 'cherry picking' sections of case law in their favor. In many cases, traders can trump the IRS by showing how their case for trader tax status is supported in case law.

If you are not a clear and convincing case for "fulltime trader tax status" (in the business of trading), we strongly suggest that you carefully read our new 2003 case law guide section.

Our 2003 guide "rule of thumb" for a "close call" on "trader tax status" determinations is as follows:
The IRS may attack your trader tax status if you don't trade fulltime every-day-all-day and/or you have less then 800 round turn trades per year and any of the following conditions apply: you have long average holding periods (over 30-days), you have other business activities or jobs, you are retired and/or unemployed, or you have a spouse supporting your family. If you feel the IRS has any ammunition to consider your trading business a "hobby" or an investment activity versus a business activity, you need this guide.

Highlighted Recent Recordings:

*Entities & Employee-Benefit Plans
*Current Developments in Tax Law that Affect Traders
*Accounting for Traders
*The Section 1256 club is hard to get into: Futures on foreign exchanges often donít qualify
*Puerto Ricoís tax haven status
*Entities: A key update on trading entities and management companies
* 2013 Tax Filings For Traders & 2014 Tax Planning
*Forex Tax Treatment & Planning
*Trader Tax Law Update: Current Developments
*2014 Tax Planning & Will an Entity Help Lower Your Tax Bill?
*Audits of Performance Records

New Website

Trader Tax Center


Tax Newsletter & Calculators

Highlights (see the full archive):

Aug 19: Foreign partners in a U.S. trading partnership can be tax free Read More

Aug 13: IRS warns Section 475 traders Read More

June 20: Tax treatment for Nadex binary options Read More

June 19: IRS softens its stance for some taxpayers with undeclared offshore accounts Read More

June 12: IRA rollover rule changes Read More

June 6: Bitcoin is not reported on 2013 FBARs Read More

June 5: Tax deadlines in June: U.S. residents abroad and FBAR Read More

June 2: Tax treatment for foreign futures Read More

May 21: Bitcoin tax update: Can business traders apply Section 475 elections to bitcoin trades? Read More

May 13: Puerto Ricoís tax haven status is tailor made for investors, traders and investment managers Read More

May 6: Entities: A key update on trading entities and management companies Read More

Mar 25: IRS guidance on bitcoin transactions will chill its use Read More

Feb 27: Another trader tax court loss (Assaderaghi) Read More

Feb 1: Net investment tax details Read More

Dec 4: IRS final regulations for Net Investment Tax help traders. Read More

Dec 3: Bitcoin is a hot commodity, but is it taxed like commodities, assets, or currencies? Read More

Nov 15: Another non-business trader gets busted in tax court trying to cheat the IRS. Read More

Nov 6: Hedge fund investors depend on ďassuranceĒ from quality independent CPA firms. Read More

Oct 29: ObamaCare taxes are starting to affect traders. Read More

Aug 30: The Tax Court Was Right To Deny Endicott Trader Tax Status Read More

Aug 18: Common trader tax mistakes Read More

July 24: Learn the DOs and DONíTs of using IRAs and other retirement plans in trading activities and alternative investments Read More


GreenTrader blog archive, Forbes blog, Benzinga blog.

 




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