Filing tax return as day trader

In order to file taxes as a trader for 2006, what if anything do I need to do now? I filed as an investory for 2005.

I would like to be able to deduct computer, internet, subscription etc. expenses, and I believe I read somewhere that it is necessary to declare that you are a trader the year before... I don't care about mark to market because I don't ever hold overnight.
 
Quote from bellman:In order to file taxes as a trader for 2006, what if anything do I need to do now? I filed as an investory for 2005.
necessary to declare that you are a trader the year before... I don't care about mark to market because I don't ever hold overnight.
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M2M has little or nothing to do with holding overnight, other than you are more likely to have wash sales problems, which is a problem that M2M cures.

Trader Status is declared AFTER the year is over. M2M for most individuals must be elected DURING the (first) year that is it elected no later than April 15th.

M2M also allows losses to be deducted in excess of $3,000, which for some people is preferrable than the $3,000 limitation.
 
I'm not sure what the big deal is. If you a trader tax program such as tradelog, it can do your taxes pretty easily. And then just e-file if you don't want to print all those pages.
 
Quote from bellman:

In order to file taxes as a trader for 2006, what if anything do I need to do now?
More...

Nothing now except keep records of the time you spend trading. If you live in the US and have a full-time job you'll have to convince the IRS that you trade for a living., e.g., you spent considerable time in your trading business - almost every day the market(s) were open, with short holding periods, etc, etc.

I'd suggest you go to http://greencompany.com and browse around. If it looks as though you can qualify as a trader spend some money on his book.

Jack
 
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