How To Be Eligible For Substantial Tax Savings As A Trader

17 Aug

Aug 17, 2020 at 12:00 pm EST


Join Robert A. Green, CPA, of as he explains the tax advantages of “trader tax status” (TTS).

  • Learn the golden rules in detail for how to be eligible for and claim TTS, no election is required.
  • Automated trading systems (ATS) can qualify for TTS, providing the trader is significantly involved with the ATS. Trade copying software might not be eligible.
  • TTS traders deduct business expenses, startup costs, and home office expenses, whereas investors cannot.
  • Learn how TTS traders use an S-Corp to deduct health insurance and retirement plan contributions.
  • TTS traders are entitled to elect Section 475 MTM ordinary gain or loss treatment. Section 475 trades are exempt from wash sale losses on securities, and the $3,000 capital loss limitation.
  • Section 475 income, net of TTS expenses, is eligible for the 20% qualified business income (QBI) deduction if the trader is under the taxable income threshold.

Webinar hosted and recording produced by Interactive Brokers. Everyone is welcome; you don’t have to be a client of IBKR.