It’s been quite difficult to find much information on this so I’ll ask here, if someone makes a lot of money through arbitrage (I.e. taking advantage of pricing discrepancies amongst assets on different exchanges) can they simply pay the taxes as normal income? I found someone awhile ago in which states that arbitrage profit is simply taxed as normal income primarily being that arbitrage IS NOT a short term nor is it (obviously) a long term investment, therefore profits aren’t taxed as capital gains (I.e. NO profits were made via the appreciation of the underlying asset, profits are generated simply from exploiting discrepancies in market value of an asset on different exchanges).
Additionally, is TurboTax Self Employed the correct product to be using for my tax situation (as described above)?
