FT71 posted this on twitter and I found it interesting.

Trader Tax Status

It is a video about Trader Tax Status.

Maybe it will also help someone.
(I am not associated with either FT71 or the TraderTaxCoach.)

Check the main tax thread on NexusFi (formerly BMT), and the excellent tax webinar on NexusFi (formerly BMT).

Mike

Mike if this would be better there, feel free to move it.

it is actually two separate issues;
a) can he claim mark-to-market - fail
b) can he claim trader status - 50/50

Hi Gents,

I’m soooooo lost when it comes to taxes (and scared out of my mind). I tried calling the IRS to help explain my tax liabilities when trading the ES and they laughed at me and told me to hire a tax attorney.

I’m currently under the impression that it’s nearly impossible to get “trader status” when also collecting a W2.

I consulted four different CPAs and got four different answers (all claiming to be trader CPAs)

I’m also currently under the impression that without “trader status” I can only write off 3k a year of losses. Does this mean that if I make $100,000 and lose $100,001 that then I owe the IRS taxes on 97,000???

I’ve given up trying to figure this out and just purchased a “entity formation service” from one of these “trader tax experts”. It’s been a rough start so far with this specific company, but I’m keeping my fingers crossed.

Please use the main tax thread:

The Tax Thread I thought we could use a thread devoted to Taxes. This is all things taxes regarding trading. One example, Advantages/disadvantages for different situations (equities, futures, forex, etc) as well as benefits of filing sole-proprietor vs LLC or as a …

Mike