FREQUENTLY ASKED QUESTIONS What are the IRS requirements for claiming Trader Status?
• trades on a frequent, regular and continuous basis • has a substantial number of trades • does short-term trading • spends a substantial amount of time trading • has a small percentage of income derived from dividends • takes their trading expenses on a Schedule C • has the existence of an office – either home office or otherwise Keep in mind, however, there are no hard and fast rules and the determination of Trader Status remain subjective. What I have outlined is derived from my research and experience as is based upon my review of applicable statutes, court decisions, IRS regulations, procedures and protocols. Since the determination remains subjective you should seek professional guidance based upon your particular circumstances. Our office offers a FREE Trader Status Evaluation Questionnaire. If dividends are received on the investment part of my portfolio on what section of the tax return would the dividends be declared? Dividends will always be reported on Schedule B because d
