Investor or trader in the IRS’s eyes
Know the three tests the IRS uses for trader tax status, and what the mark-to-market election changes.
Module 20 of 26, US tax walkthroughs (general information). Lesson 4 of 5, about 16 minutes. This module is for readers in the US.
The takeaway
The IRS uses three tests together (profit motive from price moves, substantial activity, continuity and regularity) to decide trader status. It changes your rules, not your reality; get advice before assuming it applies to you.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
Open this lesson in the course
General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.