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Thread: Green Trader Tax
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Old 07-05-2009, 06:05 PM
phanna phanna is offline
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Join Date: May 2009
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MTM, Trader Tax Status, Tax Entity Questions
I am studying your book. I have your "Golden Rules". My goal is to trade Forex spot (only), make money and take as many tax deductions as possible. I would like to take all steps necessary to avoid any IRS scrutiny or audit.


I do not need retirement plan or medical plan deductions.

Does electing IRC 475 MTM have any validity for my situation?

How does a trader prove to the IRS that he has "Trade Tax Status"? Is there a Form that the trader must file? Or is "Trader Tax Status" simply a documentation of required activity that must be provided to the IRS (in the event of an inquiry)?

If I qualify for "Trader Tax Status" in all areas except for $25,000 presently in my account (but achieve a $25,000 balance by year end) would I be eligible to file a 2009 Return with "Trader Tax Status"?

How would my situation benefit by filing a Tax Entity Return?

Thanks.
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