Trader Tax Law Update: Business Treatment, Elections, Entities & Retirement Plans

Tax changes are in the works, including expiration of Bush-era tax cuts and tax reform. Will traders be able to retain lower tax rates on futures (including forex in some cases), business expense treatment using trader tax status and Section 475 ordinary loss treatment? Will traders be able to continue excluding trading gains from social security taxes? A flatter tax code may include one tax rate (no capital gains rate) and also limit itemized deductions. That negatively impacts investors much more than business traders. Robert Green covers these latest developments.

Learn the dos and don’ts of trader tax status, including how to qualify for these business tax breaks; key tax treatment differences between securities, futures, forex and more; tax elections and when to make them; using entities to unlock AGI deductions including retirement plans and health insurance premiums; the best type of entities and retirement plans for traders; and how to handle pre-business education expenses, while staying clear of promoters’ false promises for education deductions using poor multi-entity schemes.