Option trader tax status

[joezapp]

That's what I did and it seems to work. After the first audit a few years ago the IRS has not bothered me since. I did (and do) keep good records and go show every trade for every day, costs associated with each trade (Commissions, NFA regulatory fee, CME fee, etc.)

Thanks, Steven. Can you share the advantages that you found by forming the LLC for yourself (as your wife has her own LLC) over using "trader status"?

 

[Robert Morse]

Would you agree?

And can you point out the positive aspects of setting up an LLC, aside from having asset protection?

I have to say that taxes are not my specialty. When I did trade full time, I was very concerned about keeping my home, properly deducting expenses and a profit sharing plan, so the LLC was the way to go. Right now, any trading I do or a CTAs for me, is done in my ROth IRA, so taxes are not an issue.

I believe that every trader that is active, should consult a specialist like Green Trader Tax or read the free information on their website.