IRS topic No. 428 (https://www.irs.gov/taxtopics/tc429) states
“A trader must keep detailed records to distinguish the securities held for investment from the securities in the trading business. The securities held for investment must be identified as such in the trader's records on the day he or she acquires them (for example, by holding them in a separate brokerage account).”
I have only one account. Some of the stocks are hold any where from 2 weeks to year and some time more . Some are exclusively for day trading for a day or two. Basically its an investment account and trading account.
Does my account satisfy the IRS requirement for MTM trader status. Or, should I have to open a separate brokerage account exclusively for day trading account as a trader. Another for investment account.
The reason I hold all in one account is that I get large margin amount if on occasion I need one.
nvrreddy
