Establishing an entity can save active traders thousands of tax dollars. Business traders unlock employee-benefit deductions, gain flexibility with a Section 475 election, limit wash-sale losses and solidify trader tax status (TTS).
The IRS Is In Favor Of Entity Returns
It’s important to divide investments from business trading when claiming trader tax status. An entity is most serviceable in that respect. With an entity, it’s simple to set up and run. Consider our entity formation services located here.
Report Expenses On A Schedule K-1
Report all entity trading expenses, gains, and losses on the entity tax return and issue a Schedule K-1. For more information on entity solutions for active traders visit our Day Trader Business Structuring page today!