ES Tax Question

A

Agassi

Hello,

Here is my question:

I day trade only ES and I also have a full time regular 9 - 5 job. Which one of the following 2 options is better in order to pay less taxes?

1) I trade under my own name.

  • I understand that under this option the IRS does not allow me to use the trader status since I have a regular job.
2) I open an account in my dads name.

  • My dad is retired and I support him financially
  • I do claim him as my dependent on my income taxes
Question: If the expected profit from day trading ES is $100,000 per year. Then which one of the above 2 options is advantageous? Am I better of trading under my name and claiming my dad as my dependent on my taxes (he does not file income taxes on his own)?

OR

Am I better of trading under my dads name and he would qualify for active trader status and he file income taxes separately.

Is option 2 better than option 1?

Please advise the pros and cons and thanks a lot.

Thanks
 
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