Image How To Achieve Tax Savings As A Trader Watch on GoTo Webinar

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.

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This material is from Green Trader Tax and is being posted with permission from Green Trader Tax. The views expressed in this material are solely those of the author and/or Green Trader Tax and IBKR 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 sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. 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.

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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.