Is IRS trader status permanent?

[sprstpd]

Yeah, the IRS document I linked is incorrect. O.K.
Typical ET. Everyone is always wrong, unless I think otherwise.

If you actually trade (with or without TTS), I wish you well.

I did read your link.

However, it does not apply to trading:

https://www.irs.gov/taxtopics/tc429.html

Gains and losses from selling securities from being a trader aren't subject to self-employment tax.

If the income is not subject to self-employment tax, then it is unearned income.

 

[turkeyneck]

no, you choose how to file every year. Trader status is just a filing choice. All it does is allow you to write off expenses, nothing more and a home office is a red flag. If you travel to seminars about trading that would be a reason to file as trader.

Is TTS another IRS red flag and your audit risk increases big time with it?