(Total Views: 196)
Posted On: 04/21/2017 8:26:09 PM
Post# of 106808
From that link...
You must seek to profit from daily market movements in the prices of securities and not from dividends, interest, or capital appreciation;
Your activity must be substantial; and
You must carry on the activity with continuity and regularity.
Found this on number of trades...
So for 52 weeks the above taxpayer had to make 29 trades a week. According to this article the standard is over 1000 trades per year.
https://www.forbes.com/sites/anthonynitti/201...8e9998112a
You must seek to profit from daily market movements in the prices of securities and not from dividends, interest, or capital appreciation;
Your activity must be substantial; and
You must carry on the activity with continuity and regularity.
Found this on number of trades...
Quote:
In applying the tests, the Tax Court first set out to determine whether the taxpayer’s trading activity was substantial. In doing so, the Court considered the number of executed trades in a year, the amount of money involved in those trades, and the number of days that trades were executed.
Number of Trades
The taxpayer executed 204 trades during 2006, 303 trades during 2007, and 1,543 trades during 2008. Based on precedent, the Tax Court concluded that the number of trades he executed was not substantial in 2006 and 2007 but was substantial in 2008.
So for 52 weeks the above taxpayer had to make 29 trades a week. According to this article the standard is over 1000 trades per year.
https://www.forbes.com/sites/anthonynitti/201...8e9998112a
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