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.
TTS traders deduct business, startup, organization, and home office expenses, whereas investors cannot.
- TTS is a pre-requisite for using Section 475 MTM accounting which exempts securities trades from wash sale loss adjustments, navigates around the $3,000 capital loss limitation, and unlocks a 20% qualified business income (QBI) deduction.
- If you did not elect Section 475 on time, learn to avoid wash sale loss adjustments at year-end.
- Learn how TTS traders use an S-Corp to deduct health insurance premiums and high-deductible retirement plan contributions.
- Learn how to use a TTS partnership or S-Corp for a SALT cap workaround and segregate trading vs. investments.
Disclosure: Green Trader Tax
This information is educational. Where specific tax advice is necessary or appropriate, you may wish to consult with a qualified tax advisor. Robert A. Green and the Green companies are not affiliated with Interactive Brokers.
IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Disclosure: Interactive Brokers
Information posted on IBKR Webinars that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Webinars 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 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.
Disclosure: Tax-Related Circular 230 Notice
The information in this presentation 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.