Self employed day trader in college

[wrbtrader]

I seem to recall that you have to file for trader status for the following tax year - you cannot be retroactively apply it to previous tax years. So the OP can file for trader status for the tax year 2018, but the window on 2017 is probably closed. In that case, it won't help the OP with his problem.

My advice to the OP is to take your maximum $3k a year capital loss until you eat up your entire loss. Also either purchase the tax guide at GreenTraderTax or set up a consultation with them so you'll be more prepared in the future.

Absolutely correct.

Yet, the only thing he can do via going backwards is if he had been trading through a business identity.

I'm sure after he gets professional trader tax advice and his taxes are filed correctly...he'll be better prepared for the next tax year especially while working another job and trading in the same calendar year.

wrbtrader

 

[sprstpd]

I seem to recall that you have to file for trader status for the following tax year - you cannot be retroactively apply it to previous tax years. So the OP can file for trader status for the tax year 2018, but the window on 2017 is probably closed. In that case, it won't help the OP with his problem.

My advice to the OP is to take your maximum $3k a year capital loss until you eat up your entire loss. Also either purchase the tax guide at GreenTraderTax or set up a consultation with them so you'll be more prepared in the future.

As a followup, I think I am confusing myself here. I think I am thinking of the mark-to-market accounting election - you can't retroactively apply that to the 2017 tax year if you have not already declared that by the 2017 deadline (already passed). Achieving "trader tax status" I think is a separate thing which is a choice that you can make as long as you meet certain trading activity levels. So if you have achieved the activity level needed in 2017, I do believe you can classify yourself as a "trader" for 2017 taxes.

But do yourself a favor and contact GreenTraderTax or buy their tax guide for a more definitive source.