by Ted Tesser,CPA
Trader status, which has always been one of the hottest but
least understood topics whenever taxes are discussed, has
always left market participants confused. Hereís a certified
public accountant who also trades to explain it all to you.
Trader status has always been
one of the most hotly discussed
topics whenever taxes are discussed amid those in the industry. Until recently, the Internal
Revenue Service (IRS) code left
us in the dark,and all we had to
go on were the divergent opinions of certified public accountants (CPAs), tax lawyers, and
other tax professionals. With
the passage of the Taxpayer Relief Act of 1997 and subsequent Congressional interpretations of the law, trader status
has finally been addressed, and in fact, taken on greater
significance because of certain benefits extended to traders.