Ep 113: Trading Taxes EXPLAINED! Step-by-Step

The second part of the "Trading As A Business" series. In this episode, I will discuss the basic requirements established by the IRS to be eligible for qualifying as a trading business, or getting the Tax Trading Status. Even though I’m going to cover this in depth, I highly recommend that you consult a tax professional.
The guidelines used to determine whether a business qualifies as a “ traders in security” is found on the IRS Website under Topic 429: https://www.irs.gov/taxtopics/tc429 
As we consider this set of guidelines, please remember to consult a professional CPA. GreenTraderTax.com, established by Robert Green, has a few golden rules regarding the IRS guidelines for your business.  Learn more about their consulting services here: https://greentradertax.com/services/consulting/
What is needed for the IRS to recognize you as a trader?  Refer to this article from the IRS titled “Traders In Securities” : https://www.irs.gov/taxtopics/tc429
To find a  consultation on these services, please visit  https://www.rockwelltrading.com/taxes. 

Trading Futures, options on futures and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all
investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources.
You may lose all or more of your initial investment. The lower the day trade margin, the higher the leverage and riskier the trade. Leverage can
work for you as well as against you; it magnifies gains as well as losses. Past performance is not necessarily indicative of future results.

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Markus Heitkoetter