What Are Some Negative Aspects Of Being Classified As A Day Trader ?
A Day Trader is required to report his or her business activity on IRS Schedule C. Any income from the business is subject to both income and self-employment taxes. There is also a strict accounting/bookkeeping requirement. The Day Trader must segregate investments into 2 separate groups, trading securities and investment securities. Gains and losses from investment securities are reportable on IRS Schedule D. Gains and losses from trading securities are reportable on IRS Schedule C.
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