Close Navigation
Learn more about IBKR accounts
How To Achieve Tax Savings As A Trader

How To Achieve Tax Savings As A Trader

Aired On

Sep / 16 / 2021
12:00 pm - EDT
Robert A. Green
Green Trader Tax

Join Robert A. Green, CPA, of GreenTraderTax.com as he explains the tax advantages of “trader tax status” (TTS).

  • Learn the golden rules for eligibility for TTS for full-time or part-time traders. You can claim TTS for all or part of 2021 and 2020; the IRS does not require an election for TTS.
  • Automated trading systems (ATS) can qualify for TTS, providing the trader is significantly involved with creating the ATS. Using software or services that mimic other people’s trades is not eligible for TTS.
  • TTS traders deduct business expenses, startup costs, organization costs, and home office expenses, whereas investors cannot.
  • Learn how TTS traders use an S-Corp to deduct health insurance premiums and high-deductible retirement plan contributions.
  • TTS is a pre-requisite for using Section 475 MTM accounting which exempts securities trades from wash sale loss adjustments, navigates around the capital loss limitation, and unlocks a qualified business income deduction.
Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Green Trader Tax and is being posted with its permission. The views expressed in this material are solely those of the author and/or Green Trader Tax and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Tax-Related Items (Circular 230 Notice)

The information in this material is provided for informational purposes only and does not constitute tax advice and cannot be used by the recipient or any other taxpayer to avoid penalties under any federal, state, local or other tax statutes or regulations, or to resolve any tax issue.

Disclosure: IBKR Tax Disclosure

Interactive Brokers does not provide tax advice, does not make representations regarding the particular tax consequences of any investments, and cannot assist clients with tax filings. Investors should consult with their tax professional about the tax implications of any investment.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.