Have you heard of the “Trader Tax Status?”
Do you know that as as trader, there are many tax breaks and benefits available to you?
Unfortunately most traders don’t take advantage of all available tax breaks. This could cost you thousands!
It doesn’t matter if you are new to trading or have been trading for a while. And it doesn’t matter whether you are making money with trading or you lost money.
If you qualify for “Trader Tax Status”, then you are entitled to several tax breaks that investors are not.
As an example, if you qualify for trader tax status, you can deduct “investment expenses” such as home-office deductions and most education expense!
The problem: Qualifying for trader tax status still remains confusing. And you local accountant probably doesn’t even know what you are talking about when you mention it.
And even if you qualify for trader tax status, it doesn’t mean that you can deduct your trading losses! The trader tax status only gives you the right to deduct your trading business expenses, and NOT necessarily your trading losses.
But if you traded “Section 1256 contracts”, you might be able to. You could get 12% off your tax rates, and carry back 1256 contract losses against 1256 contract gains in the prior 3 years!
So what are these “Section 1256” contract?
“Section 1256” contracts include U.S. futures, options on futures, foreign futures with a CFTC and IRS letter, broad-based indexes, options on broad-based indexes, forward forex with the opt out election into Section 1256g and options on commodities/futures ETFs taxed as publicly traded partnerships (PTPs).
We did a webinar with Robert Green, the leading authority on trading and taxes. In this webinar, he explain how you qualify for trader tax status, what “Section 1256” contracts are and how trading them affect your taxes.
Below is the recording of this “Trader Tax Webinar”. It’s over 70 minutes long and full of great information that you can use right away.
Here are the next steps:
1.) Click here to download the Executive Summary of Robert’s Trader Tax Guide
2.) If you think that you should form an entity, click here to schedule a session with Robert Green to discuss your options.
If you have any questions, please contact Robert Green, since HE is the expert on trader tax – and not me 😉
Hope this helps.
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