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Proposal for a 0.1% to 0.5% "Tobin tax" on transactions in futures and securities purchases and securities sales.  Example: a $50,000 trading account fully involved in day-trading, averaging 5 round turns per day would incur a tax of $100,000 at the lowest proposed $0.1% rate. - Congressional Democrats including Peter Defazio (D-OR-4th), August 2009

Most of the funding for a health reform plan to come from an income tax surcharge of 1% on those earning between $350,000 and $500,000; 1.5% on those with incomes between $500,000 and $1 million; and 5.4% on those making more than $1 million. Since the surtax is levied on adjusted gross income, it applies to dividends and capital gains even though they are taxed at a lower rate than ordinary income.- Proposal from the U.S. House of Representatives, July 2009

The [above is the] most blatant form of Robin Hood economics ever proposed. - Former Labor Secretary Robert Reich

1980 - $200+K income taxpayers reported a total of $36T and paid only $19T in taxes resulting from a 70% income tax rate.
1988 - $200+K income taxpayers reported a total of $352T and paid $99T in taxes when the income tax rate was cut to 28%. - Dan Mitchell of the CATO Institute, June 2009 (youtube)

Some are claiming that the budget plans adopted in March 2008 by the House and Senate Budget Committees would constitute "the largest tax increase in history."- Center on Budget and Policy Priorities

There should be tax increases. Speaking personally, I think there are a lot of very rich people out there whom we can tax. - Sen. Barney Frank (youtube)

There are two systems of taxation in our country: One for the informed and one for the uninformed. - Judge Learned Hand

Collecting more taxes than is absolutely necessary is legalized robbery. - Pres. Calvin Coolidge

The most dangerous thing you can do to any businessman in America is to keep him in doubt, and to keep him guessing on what our tax policy is. - Pres. Lyndon B Johnson

In times like these (2009), those of you with only a small amount of your savings left - just look around and count your blessings ...and make sure to report all of them. - seen at a local IRS office

Our tax code is so complicated, we've made it nearly impossible for even the Internal Revenue Service to understand. - Treas. Paul O'Niell

I have wondered at times about what the Ten Commandments would have looked like if Moses had run them through the U.S. Congress. - Pres.Ronald Reagan

Looking for tax deductions?

Short-term trading is fast... exciting... profitable... challenging... and tax deductible!

When you tally up your results each year - do you see the capital gain tax taking away too much from your hard won trading profits? As an active trader do you find that you have too little time at the end of the day to do the necessary tax planning to avoid paying excessive income taxes? What is the real story behind all the talk about the tax benefits from choosing trader status and electing mark to market?

When is a CPA firm needed?

Serving Traders for over 20 years!        We'd Like to hear from you

Here at TraderStatus.com™ we will bring together in one place the information necessary to help you survive unnecessarily high short-term capital gain taxes, self-employment taxes and state and federal income taxes. To accomplish this, often a separate trading entity is the answer, but just as often we avoid it as not being cost effective in a particular situation.

Many traders do not yet even realize that they are paying far too much to the Federal Government. Existing, proven legal procedures, which in many cases can significantly reduce taxes each and every year, are available to anyone qualified to elect to use them.

As we all eventually learn, those low capital gain tax rates of 15% or lower are not available for the daytrader's lightning fast trading profits. Rather, an individual daytrader's gains (or losses) are subject to the higher ordinary income tax rates!

Investors and securities traders may incur substantial costs with on-line fees, commissions, real-time data-feeds, computer equipment and so on. The Internal Revenue Service, on their own, do not treat most taxpayers very fairly when it comes to deducting these expenses. Leaving it up to the IRS publications and instructions, at best, a taxpayer must first qualify to itemize his deductions on Schedule A - making those deductions subject to a 2% of Adjusted Gross Income (AGI) reduction and for some high-income taxpayers even an additional 3% of AGI reduction.

Please take the time to read and understand the information found on our web site and also on the Discussion Board as it can be very helpful to you when preparing your taxes and when planning your tax strategies.  Every month we hear from taxpayers who found this web site too late or after they already paid someone for a download that contained nothing more than the basic information here available to you for free.  Taxpayers who were ill-advised by normally very competent CPAs and other tax practitioners, but for whom the tricks and traps  of Trader Status were unknown to them.

A good CPA does not need to know everything, he only needs to know where to look it up when a problem arises, or when he's doing your tax planning.  Unfortunately the hard facts are that, when it comes to traders in securities and traders in commodities, many tax advisors have no clue that there even is a Trader Status issue to look up, let alone having the practical hands-on experience necessary to be aware of the tricks and traps to be found!

What can you do?

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Help is out there for those qualifying taxpayers whom are active enough to file with the IRS as a TraderStatus™Taxpayer. Under Trader Status an electing daytrader may deduct all of his ordinary and necessary expenses. And for taxpayers filing under Trader Status they do not itemize those expenses on Schedule A (but yes, they may even take the "standard deduction" in addition to all their "trader status" expense deductions). Since a trader does not "itemize" daytrading expenses these are not subject to the 2% limitation, the 3% limitation, or many of several other restrictions the IRS places on the average investor!



Want to learn more about using TraderStatus on your tax return? 
You've come to the right place! 
Come inside and look around where you'll find:

A basic overview accurately describing the law pertaining to Traders, Investors and Dealers and the Mark-to-Market election.

Order form to receive additional more detailed TraderStatus information which can be invaluable when doing your own tax return, or for providing the information necessary to defend yourself during an Internal Revenue Service Tax Audit.

Educational (and therefore tax deductible) Trader Books and Audio Tapes.

Stock trading spreadsheet for manually keeping track of your trading on a day-to-day basis.

Instructions to retain Professional CPA support for a personal one-on-one telephone & email consultation to discuss your own unique tax situation.

Retainer payment form for:  Tax Return Preparation; Mark-to-Market election preparation; Correcting prior errors made when traders fail to file the required IRS elections properly & timely; Using the correct forms, and applying the current appropriate tax favored theories as they apply to you on your own tax return;  or for Representing you in front of the IRS if you're being examined under field audit or mail inquiry.


Much more in tax counseling and tax planning strategies is available starting on our order page, from the TradersTaxPlan™  to a full service engagement. Techniques as sophisticated as you need them to be will be custom designed for securities trader and commodities trader clients.