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Returning Member
posted Apr 27, 2023 10:21:18 AM

Trader Tax Status

Can a trust brokerage account qualify for trader tax status?

 

Thanks,

0 3 521
1 Best answer
Level 15
Apr 27, 2023 10:40:58 AM

@Contango72 wrote:

Can a trust brokerage account qualify for trader tax status?

The trust would have to be a grantor trust (where you are considered to be the "owner"), which it most likely is.

3 Replies
Level 15
Apr 27, 2023 10:40:58 AM

@Contango72 wrote:

Can a trust brokerage account qualify for trader tax status?

The trust would have to be a grantor trust (where you are considered to be the "owner"), which it most likely is.

Returning Member
Apr 27, 2023 12:27:17 PM

I'm the Trustee / Beneficiary, my deceased Father set up the trust, I assume he is the Grantor?   

Level 15
Apr 27, 2023 12:31:37 PM

Yes, he would be.

 

Assuming the trust is now irrevocable and you do not have the requisite authority or power, the trust is treated as a separate entity for federal income tax purposes (i.e., not a grantor trust).

 

You should check with a local attorney who can review the document.