Andrew Schmidt Talks Day Trading and the IRS
A new wave of day traders are quickly learning the ins and outs of buying, selling and holding stock and many need to begin learning tax planning strategies. However, the Internal Revenue Service (IRS) won’t let just anyone call themselves a “trader”, they draw a fine line between investor and trader for tax purposes.
“Trading is a business, even if it’s for the trader’s personal gain, said Andrew Schmidt, associate professor of accounting for Poole College. “As a business, there are potential business expenses write-offs including home office expenses, computer equipment, software, trading newsletters.”