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Day Trader Tax Court Rulings

I.R.C. or Internal Revenue Code is a tax professional’s operating guide and used as a reference when preparing tax returns or providing tax advice. This tax code provides guidance on tax deductions, accounting methods, and income reporting requirements.

Unfortunately, this code completely lacks guidance on the requirements needed to meet “trader status”, “trader in securities” or the allowance of the “Mark to Market Accounting Election”. Day trading tax court cases carve an abstract picture of what the IRS looks for when arguing these points. Precedent from past day trader court cases provide some guidance to professionals; however, you should never expect a consistent or static ruling from one case to the next. Here is a customized listing of each case we believe warrants additional attention.

 

 
2009
2008
2008
2008
2004
 
Sanjay Kohli V. Commissioner
William Holsinger V. Commissioner
Carl Jones V. Commissioner
Mark Kantor V. Commissioner
Frank Chen V. Commissioner
 
Mark to Market Denied
Mark to Market Denied
Seminar Denied
Mark to Market Denied
Mark to Market Denied
 

Don’t run the risk of your name being next on the list of tax court cases! Find out if you qualify to day trade as a business without filing a risky Sole Proprietorship (Schedule C Trader) tax return.

Allow our team of day trading tax professionals to create a personalized trader tax plan just for you. Your plan is carefully drafted to include elections for capital loss deductions, trading business planning, and cash flow management techniques. Most importantly, we will analyze your situation to see if you qualify to trade in a legal entity. A properly structured entity could dramatically reduce your taxes and chances of IRS audit, legally and ethically.

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