How can a part-timer achieve trader status

Sorry guys, I 'd mean to cause a fight with my question.

I just wanted to know if an entity (S-corp, C-corp, LLC, or He-man Woman Hater's Club) could be used to get around the fact that given my full-time job (and perhaps my limited activity), I probably don't qualify for "trader status".

Subsequently, if I were to explore this route, would I then be a nasty audit waiting to happen?

Semper
 
To take the trader deductions (which flow thru to you) you would have to also have to qualify as a full time/part trader. I know there are a couple tricks to this that may even make it work for you-from solid CPA info, but my opinion is that it wouldn't stand up to an audit.

As far as audit chance.......your 97% safe.

My trader expenses are low(how many PCs can you buy in 1 year!)-so the trader status does save a buck........but its not a huge deal if your making good money at it anyway. It all dependes on how much you make -or lose, that makes the trader status important.


QUOTE]Quote from sempergumby:

Sorry guys, I 'd mean to cause a fight with my question.

I just wanted to know if an entity (S-corp, C-corp, LLC, or He-man Woman Hater's Club) could be used to get around the fact that given my full-time job (and perhaps my limited activity), I probably don't qualify for "trader status".

Subsequently, if I were to explore this route, would I then be a nasty audit waiting to happen?

Semper [/QUOTE]:D :D :D
 
As much changes during the course of a year, the setup of an S-corp has been succeded by the now so popular way of conducting business as an LLC. You are able to be taxed as an S-corp when you set up your LLC when you elect yourself as a sole member.
 
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