|
|
Trading, or just pressing buttons?
|
AT-December 2006-1
|
|
Automated trading systems, long popular on Wall Street, are now available to retail traders. Will the IRS attempt to deny tax benefits to traders who use automated solutions, claiming they are not doing any actual trading?
|
Detailed Description
Is automation helping or hurting the pilot as far as qualifying for trader tax status? Unfortunately, the jury is still out on this issue, and it’s uncertain how the IRS will react in an exam, appeals, and tax court.
On the one hand, automation is helpful and should not count against trader tax status; on the other hand, the IRS may not be very accepting because it could unlock too many benefits to too many traders.
|
|
|