Full time trader is being self employed I assume. So, do we just
claim that during taxes or any paper work to inform IRS or get a
self-employment tax ID? How does this work?
you don't need any other ID to be self-employed. But be
sure to take advantage -- legally -- of one of the best parts of
being self-employed......taking deductions. Books, magazines,
newspapers, education, subscriptions, office supplies, research and
development, percentage of your house expenses for home office,
also internet, tv, phone.
but if you do that and put your business as "trading" or
"daytrader" or "investor" you're going to have trouble if you don't
jump through the right hoops -- again it's not as easy as it should
be -- more so if you have other work as well
It "should" be a straightforward decision to open your own
business as a trader the same as any other business but
unfortunately it's a real mess. Until you learn more you have to
assume that all your trading is reported on Schedule D the same as
somebody with a full time job who trades a mutual fund twice a
year. You *may* eventally be able to elect "trader tax status" but
you have to do a lot of home work. See
Green's site
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taxes related...
Posted by vsunil on 12th of Apr 2010 at 06:03 pm
Full time trader is being self employed I assume. So, do we just claim that during taxes or any paper work to inform IRS or get a self-employment tax ID? How does this work?
thanks
you don't need any other
Posted by Michael on 12th of Apr 2010 at 08:12 pm
you don't need any other ID to be self-employed. But be sure to take advantage -- legally -- of one of the best parts of being self-employed......taking deductions. Books, magazines, newspapers, education, subscriptions, office supplies, research and development, percentage of your house expenses for home office, also internet, tv, phone.
but if you do that
Posted by bkout3 on 12th of Apr 2010 at 08:37 pm
but if you do that and put your business as "trading" or "daytrader" or "investor" you're going to have trouble if you don't jump through the right hoops -- again it's not as easy as it should be -- more so if you have other work as well
It "should" be a straightforward
Posted by bkout3 on 12th of Apr 2010 at 07:28 pm
It "should" be a straightforward decision to open your own business as a trader the same as any other business but unfortunately it's a real mess. Until you learn more you have to assume that all your trading is reported on Schedule D the same as somebody with a full time job who trades a mutual fund twice a year. You *may* eventally be able to elect "trader tax status" but you have to do a lot of home work. See Green's site