Trader Tax Status
Trader tax status constitutes business treatment and it unlocks an assortment of meaningful tax benefits for active traders who qualify.
The first step is to determine if you qualify for trader tax status (TTS). If you do, you can claim some tax breaks such as business expense treatment after the fact, and elect and setup other breaks — like Section 475 MTM and employee-benefit plans — on a timely basis.
Visit these Trader Tax Status pages to learn more:
Business Expenses are far better than investment expenses.
How to Qualify — it’s nuanced and our golden rules help.
Section 475 MTM Accounting — elect “tax loss insurance.”
Employee-Benefit Plans — deduct retirement plans and health insurance premiums.
Defend it with the IRS — How to win when an auditor challenges TTS.
For more in-depth information on the tax benefits of trader tax status, read Green’s Trader Tax Guide.