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Investing

How Many Trades Do You Need to Qualify as a Trader for Tax Purposes? Breaking Down the Numbers

Its advantageous for short-term investors to qualify as traders, rather than investors, for federal income tax purposes. Unfortunately, theres no bright-line distinction between trader and investor status. Heres an overview of the IRS and U.S. Tax Court guidance to help determine if you qualify as a tax-favored securities trader. As someone who’s navigated the tricky … Read more

Smart Ways to Legally Shield Your Money From Taxes

Do you remember that first paycheck you ever got? I sure do. It was like watching a magician perform a disappearing act, except it wasn’t entertaining at all. After federal taxes, state taxes, Social Security and other deductions, my earnings shrank faster than a wool sweater in the hot dryer I was shocked to see … Read more