If you’re an active trader, you could benefit from what’s called mark-to-market election in a big way. It can be especially useful for those who are just starting to make their mark in the world of trading. There are some very strict IRS guidelines surrounding mark-to-market election, which means that not everyone will be able… Read more »
It’s essential to have a common understanding of what expenses traders can deduct, what constitutes day trading income, and what particular rules apply if the IRS considers you a qualified active trader. What matters most is that you’ll need to know what tax forms to fill out and when they’re due. At Traders Accounting, we’re… Read more »
Trader tax status drives business tax breaks including employee benefit deductions for retirement plans, business expenses, and business trading losses with the Section 475 election. An active day trader can deduct these items from gross income without limitation. But how can you qualify for trader tax status? Unfortunately, only a tiny fraction of active traders… Read more »