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Level 2
posted Dec 30, 2023 4:23:39 AM

Do I need to claim Trader Tax Status somewhere?

Hi,

 

I qualify for Trader Tax Status this year, and I do not plan to take the mark-to-market election.
In this case, do I need to file anything with IRS to claim trader tax status?
Or, do I simply create a schedule C and enter related expenses there?

 

Thanks!

0 2 526
1 Best answer
Level 15
Dec 30, 2023 6:50:30 AM

See https://www.irs.gov/taxtopics/tc429

 

There is no election that needs to be made for TTS, only if you want to elect MTM.

 

You should, of course, keep impeccable records and report expenses on Schedule C.

2 Replies
Level 15
Dec 30, 2023 6:50:30 AM

See https://www.irs.gov/taxtopics/tc429

 

There is no election that needs to be made for TTS, only if you want to elect MTM.

 

You should, of course, keep impeccable records and report expenses on Schedule C.

Level 2
Dec 30, 2023 12:55:38 PM

Thank you, @tagteam !