How to Qualify for Day Trader Status

[@BrianRiveraCPA]

🚀 Learn How To Slash $30K Off Your Taxes Without Being A “Tax Expert” Or Spending Money On An Expensive CPA! Free Strategy Session: www.thetaxonomics.com/strategy 🏦 BEST BROKER FOR ACTIVE DAY TRADING 🚀🌚💸 www.interactivebrokers.com/mkt/?src=brianriveray&url=%2Fen%2Findex.php%3Ff%3D1338 ⚡ TraderFyles: Generate your trader specific tax forms! (Coming Soon) ⚡ mailchi.mp/303044cd12e9/untitled-page ⭐Schedule a Trader Tax CPA Consultation! (Available May - Dec Only) calendly.com/tradertaxcpa/

[@FreeTraderFREEMAN]

Great information bro.

[@BrianRiveraCPA]

@@FreeTraderFREEMAN Thanks bro!

[@FreeTraderFREEMAN]

@@BrianRiveraCPA I'm willing to turn my trading into business. I have been gathering tons of information. I'm just few steps away.

[@GodsServant543]

Can you qualify for this while having a full time job as well?

[@FailFlopFly-SalesforceImports]

Hey Brian, Great Video!! Question: If an order for 1000 shares gets filled slowly like this (200, 100, 50 , 300, 50, 100, 200) can I count this as 7 orders toward my 720 trades to help meet the BEHAVE test? Cheers!

[@sasmills]

What's better for taxes? Being qualified as a trader with BEHAVE as an individual "treating" it like a business? Or establishing an LLC with scorp election and trading under that ?

[@1Phonetip]

LLC, more write offs and shelters your business from personal financial issues.

[@MarketConversations]

@@1Phonetip Hi, are you currently under LLC as a day trader?

[@royerelvir5400]

Damm at first I was like...'this guy talks a lot", but the amount of information you give is so detailed and Im so thankful for your information. Earned a follow and a constant viewer. Thanks man.

[@Outta12]

You solved a loooooot of problems with that "scale in scale out" tip!!!! I wish i heard that years ago

[@usedtowels]

it makes sense lol. its hard getn that new perspective sometimes and one phrase is all it takes.

[@Sweetpeacarino1826]

Very informative. I started trading since April 2020 with some downs but since September I've been doing so well. Planning to become an Active Trader Status soon and to be able get qualified for B.E.H.A.V.E Test. I'm no longer under that PDT rule. Next step that I need to do is to have that more 750 trades. Your content is very helpful and gave me an idea to apply for Day Trader Status. Thank you so much. New Subs here!!!!

[@TGIBBSPGA]

Keep in mind that the number of trades does not in and of itself qualify you for trader status. You could have fewer trades or many more trades than 720 and still not qualify. It’s based on the entire facts and circumstances to your unique situation.

[@thestockstalker8143]

Am I the only one who missed the "A" in B.E.H.A.V.E??? let me know... awesome video

[@BrianRiveraCPA]

Average holding period not to exceed 31 days!

[@The.DataScienceLab]

Lol I can see TOS glitching in the back. Somethings never change.

[@nzingaward]

What is TOS? Lol

[@samir_1144]

Forreal lol but they do have some of the best charting

[@6StarInvestments]

@@nzingaward Think or Swim

[@davidrobles1360]

It’s IBKR

[@thehiddenexperience4116]

So i set up an LLC, open a business trading account, transfer funds from personal to Business and start trading there for the BEHAVE test and qualify for trader status?

[@HockeyJock]

Not quite. The way I understand it: If you form an LLC, you don't need to bother trying for the BEHAVE qualification. Because you won't be taxed individually anymore - you will be taxed through your business as a corporation.

[@edwardcamarena5759]

@@HockeyJock do you know if you have an existing trading account, are you able to transfer those funds into a new LLC trading account?

[@HockeyJock]

@@edwardcamarena5759 I would think so. It will trigger a couple of forms you'll have to give the IRS at tax time... but I see no reason why you'd be unable to do that so long as you are listed with the brokerage as a Principal of the LLC

[@antbanks415]

Thank you for your service, sir!

[@chrismolloy6885]

Hey Brian, great info "BEHAVE" can't some just setup a sole proprietorship to get tax benefits instead of going with Trader Status?

[@dedicatedtofinanciallitera3550]

Bryan, thanks for the consultation today. It was awesome. I look forward to joining the portal. Also, I want to remind you to do a video soon on the account that produced over 70% interest. I'm sure the viewers will be anxious and to hear about this opportunity.

[@Maurice181]

Thanks for this. Tax topic 429. BEHAVE Business Expenses Customary to an Active Trader. Equipment used for trading. Extent at which you execute your trading, 720+ trades per year. Possess the intent to operate a business. Mark to market accounting.

[@MaryLeMuse]

This is the info I’ve been looking for, thank you so much!!!! Just subscribed and I hope to use you for my taxes next year!

[@kellyt8836]

Pure legit gold. Thank you for the info! Your computer screen looks intense lol

[@flanksinatra3785]

Brian Rivera, your acronym does not have a word for ‘A’, but a consideration for trader tax status is have an account over the PDT rule. Why not add ‘A’ for account in your acronym? Also, I love the clarity of your video on this subject. Thank you!

[@BrianRiveraCPA]

A = average holding period not to exceed 31 days.

[@JavaNights]

This is the 2nd video I'm watching from your channel, excellent. Futures traders don't have comply with Pattern Day Trader rule, trades are automatic mark to mark. Again, very well done.

[@mobbs7235]

I subscribed an hour ago on a different video about saving 20k through utilization of an LLC. YOU HAVE OUTSTANDING information. I will be saving every video to a daytrade folder here. I hope to find more recent videos and ask a few questions from time to time. Thank you for explain the dynamics. P.S. my brother, who is my business partner, is also in active reserves as a CW3 Chinook pilot. I served in the infantry '03-'07 and left as E-5. Thank you for continuing the legacy sir. You are a true renaissance man.

[@thefinalcountdown6606]

Thank you! I started day trading in June 2020. I have a regular profession but would like to supplement my income and retirement with trading. Love the content and I am trying to do everything right...I have an S corporation and will try to qualify for trader status.

[@forexpivots7431]

Thank you for clarifying this because according to the IRS document you read... "NOT...capital appreciation"... no FOREX trader or Stock trader qualifies. I assume they mean tangible assets, like Real Estate, not financial trades --- but... it's the government. So, enough said.

[@stacyjohnson7395]

Thank you for simplifying this extremely complex topic👌🏾👍🏾

[@Jwcounseling]

I’m very interested in this. I make about 7 trades a day. And I’ve paid a ton of education and computers etc this year

[@andymiser7710]

Wow nice! You are super smart!! i am qualified for trader status and I saw your video to elect the mark to market with the IRS. What is the form used to send with this election?

[@Cubuf42069]

What’s the cost for your service for trader status assistance? I meet the “BEHAVE” criteria.

[@coybriscoe8000]

SO IS THE USE OF INVESTORS BUSINESS DAIL software considered Automated Training Software.They send out alerts telling when a stock should be purchased and or sold?

[@reneegallazzi3698]

Thank you for the video. AND THANK YOU for serving out country!

[@thenewnormal3263]

Great info Brian. I qualify for trader status and am looking to utilize mark to market accounting for future tax years, however I am sitting on sizable gains in a separate account that my FA manages. My question is; if I were to elect mark to market, would the accounts managed by my FA be subjected to m2m as well?

[@Andrew-rs7tp]

Hello, I have had a little success trading stocks on robinhood and was recently restricted from daytrading. I am confused because my account is over $25k. I have been doing this for a year so I have alot to learn. Thanks

[@justinanddarleneagualo]

Thanks for the information it’s really helpful. Any chance you can explain your setup as a day trader to include your charts you have running? Thank you

[@BrianRiveraCPA]

I have 3 monitors - sides are asus 28” middle is dell 43”. I use think or swim charts typically cycle between 5/15/daily charts. Executions many different brokers

[@FreeYouself2024]

Definition states that IRS requires trading in a security. What about crypto that is not a security but currency. So to would be forex. So as I see it crypto should qualify. Also crypto is open 24 hours a day. 4 hours is not a problem. So if I employ a trading bot that executes over 20 trades a day I would get to 720. So long as IRS does not focus on dollar amount since most of my value crypto will be held long term. 180 day test is easy with bot and crypto market open 24 hours a day.

[@boy_peeps]

Thank you for dumbing this topic down, Brian!...excellent job!

[@agredo]

Trader Status vs LLC ? benefits or cons?

[@williamgarrett5774]

ok, I like the video, and thanks. I did options sales for $852,407.12, for 2020, this will be my first doing options spreads and options buy for income, my understanding is I must file before or by March 15, 2021. I usually file my income taxes using TurboTax, software. So what do I do and How to do it and your fee. and to contact you?

[@Pitchhouse1]

Hey Brian are you familiar with INVEST FEST, held in Atlanta Ga, around august. If not, you could do very well in Atlanta.

[@rockroll7649]

Thanks for your service, Major Rivera.

[@gavynmocreia22]

Great video, appreciate you're work and your commitment to our country. I have one question if you dont mind. If im using, lets say Turbo tax deluxe, is there a form on there to fill out for Trader tax status?

[@edwardwebb9961]

I don't think it's been asked yet, how are your hours recorded for H? Does your broker do that? How do I report that I've met the four hours a day?

[@olicas8137]

Brian, This is a really good question. Can you answer please

[@mariodiaz417777]

How do I give the status of trading to the LLC so the IRS see my status ? I know I have 75 days but what or what do I need to do to give let the IRS to give me the status of trading?

[@christopherbean9523]

Brian, great video. Question... If I'm swing trading and not day trading, does it still makes sense to setup an LLC?

[@bebin73]

Yes!

[@oscarmaradiaga8449]

Can you make an updated video of this but for futures traders perhaps ?

[@jbird3788]

Great video! Can you also write off a vehicle while on day trader status?

[@adeniyioriadetu7595]

Do I need to create an LLC if I trade with prop firm?

[@mfourmanagement9440]

Can you please advise if one trades mainly on the forex market? Is their a different status for forex?

[@dre5k416]

Hello Brian, Great info you pouring out on your videos. I’m interested in getting more details about your services hopefully will be added as a client.

[@azhamadto]

Hi Brian- thank you for sharing, very helpful! Would you still pass the test if you receive a w2? Having a full time job and trading on the side?

[@aviverma5531]

hi, were you able to find the answer

[@thenewnormal3263]

inquiring about this too....@@aviverma5531

[@Holistic-Jedi]

I'm curious to know how strict the volume of trades needs to be? As this is my first year really going after it, time, energy, investment in education, tools, etc., is 750 trades/transactions reasonable?

[@wlmscpa]

Very nice job at keeping it simple Sir - and thank you for your service.

[@rtanaka]

Thanks for sharing this awesome content Brian. Keep it up.

[@yourfavoritecio]

Brian, excellent video explanation good brother! I've recently started doing 4+ trades a day M-F, spend hours analyzing and have related expenses. I collectively have over $25k throughout a few different trading platforms. Do you think that would be an issue? Will I have to consolidate my funds?

[@BrianRiveraCPA]

Nope you should be good to go!

[@victornsereko8942]

Great Information Brian. Quick question. Is it best to work on ticking all the boxes to maximize chances of qualifying for day trader status before you start an LLC, or is their value in forming the LLC upfront? The only thing I am short of is the number of days I trace a year.

[@Francebound2024]

Is the 720 trades over the tax year? Very interesting subject as I am an Enrolled Agent (tax preparer) and new trader, that is looking at this possibly in 2024 or 2025. I would say as a tax professional, not many are really qualified to prepare returns for day traders. It is very specialized.

[@vidvirtudes6829]

Great video! What language from the IRS site or legal precedent lead your team to conclude 720 trades? Does the accounting start after IRS approves our day trader status or is it retroactively applied?

[@BrianRiveraCPA]

Lookup this case WILLIAM F. POPPE, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, . Mark to market is not retroactive.

[@scaryrok]

If you trade within an entity like a LLC can you deduct the same business expenses or do you still need to qualify for TTS?

[@mahalomana2]

Thanks for the info Brian!

[@rayray7244]

How do you think this whole 87k IRS hiring boost is going to work with Day trade status, LLC, S corp situations? Getting back into the industry. I just think it's going to be crazy. The IRS is already moving folks from examination to audits so we'll see. Congrats on your business and for hanging in there in the military.

[@BrianRiveraCPA]

I think as long as documentation is solid; shouldn’t have a problem

[@samcurtis8807]

Thanks so much for sharing your knowledge!

[@ADWillio2]

Does this apply for forex traders?

[@BrianRiveraCPA]

Yes!

[@richlaw5136]

What are some kinds of ways to record the hours spent in the market? Do you just keep a regular trading log?

[@ST-wx6vw]

Thanks for the great video. One quick question. When you mentioned 720 as the minimum trade volume... is it correct to say that this number is for a whole year?

[@BrianRiveraCPA]

Yes that is correct

[@FinoMark]

@@BrianRiveraCPA great video..I was wondering the same thing about the 720+ trades you mentioned. I thought you were saying the IRS wants to see 720 trades a day 😂

[@shobhapersonal1]

What about swing traders or position traders. ? Can they also be qualified as traders ?

[@mwy23]

Thank you for putting this video together and making it super clear on TTS requirements. Could you put together a video on the next step: how to file with the IRS for TTS?

[@cataleyashilluk5499]

Thanks man from r putting this video together. How do apply to TTS status.

[@TGIBBSPGA]

It is not a status you actually apply for or elect to. You simply claim it based on how you file your tax return and what accounting method you choose.

[@thenewnormal3263]

Any advice on the right entity to use? My CPA advised going sole proprietor route and now he's retiring....I'm a W2 employee but qualify for trader status

[@ajhanley8302]

Hey Great video... One question I'm not confused about though. Is Trading Forex for oneself a business that I can open a LLC for? Or must I offer services or products related to it for it qualify? Thanks

[@BrianRiveraCPA]

You can open up an LLC to conduct your forex trading business

[@4kVIDEOS722]

Very informative video! What's the trading platform and charting software that's on your monitor?

[@flyingheadband]

Okay this is great and all but what about those of us who want to have a trading business but don't want to be day traders? Can we still set up a business and take advantage of these tax breaks? Say someone has a large trading portfolio and because of the size of the trades they take they only make a couple dozen trades a year. They enter large positions based on the indicators they use and they sell half on a double. However because of the size of the trade they're taking they don't have to have very many winning trades in order to gain a large profit. That individual won't qualify for active trader status but he still runs it like a business. Thoughts?

[@4AMPizza]

Hello! To write off business expenses such as subscriptions and trading software, do I need to claim TTS? Or can I file investment income on schedule D and write off expenses on schedule C?

[@victorakauola]

Wow, one of the best informative explanations of Day Trader Status, thank you for your time content🙏🤙

[@Thelastmistake]

is it correct that as a individual if you get the trader status you don't pay the self employment tax(social security..and medicare 15.3%) being the only source of income?

[@LostOneTrades]

Does trading have to be your primary income in order to get Mark to Market status, i fit every other criteria but I make more at my night job...? Thx

[@ajarmstrong651]

what about trading forex with an offshore broker? all of these videos seem to just talk about stock trading , is it the same deal with taxes?

[@allthingsnu4673]

Thanks for this very helpful video.

[@timetojengage]

I like the screens! Where’d you get them?

[@viksra]

How does BEHAVE stand for Business Expenses Customary To An Active Trader?

[@X11CHASE]

That’s not what was said 🤦🏻‍♂️ you’ve gotta be kidding

[@sabsab-c6h]

many thanks. It appears that I very clearly passed BEHAVE test for 2022 and even 2023 so far. But I did not do anything on mark to market. Can I still file my 2022 as trader tax status so that I can avoid wash sale? I have significant losses in 2022 but recovered 40% of it in 2023 so far.

[@riskfactortrading1271]

so if you qualify as a trader in status, you basically dont have to have a llc?

[@AnthonyDavis-iz4is]

Appreciate all the info very helpful..but I'm not a daytrader I'm more like a long term options swing trader

[@michaelkiteboarder3184]

Looking forward to consultation in Orlando. Although irs topic 429 and behave test (ie 720 trades / 4 hrs day / 189 days) are of interest our existing s Corp may be an excellent vehicle for ongoing dt income / expenses

[@aidabermudez1414]

serious question, I day trade from various locations all over the world. I personally feel that I cant reach the degree of focus that I need to be at unless I'm waking up at a new location monthly, Can I deduct these travel expenses

[@medicinemanrx2694]

I day trade stock from a cash account to avoid the PDT rule. Would I still qualify as a trader in the eyes of the IRS?

[@HardKnocks123]

Excellent videos !! Do you know anyone in the Philadelphia area that does what you do, I'm a full time trader ,started beginning of the year and have done pretty well so need a real expert like yourself

[@jasonsingh4932]

hello sir, i recently passed FTMO which is a prop trading group (im sure you know this lol) for foreign exchange market. I plan do day trade full time with the capital they provide me. I was wondering what my next step would be? should i incorporate? or should i get a EIN and business account? should i do both? kind of lost at the moment thanks!

[@BrianRiveraCPA]

Typically prop traders are paid as independent contractors or k-1 partners. So depending on your structure will drive what you need to to do next

[@jasonsingh4932]

@@BrianRiveraCPA thanks for the reply, i believe its contractors. after i get all setup maybe ill schedule a consultation with you guys. thanks

[@gl.72637]

Can you claim Active Trader status if you also have a 9-5 job and have W2 in your tax returns? Can you setup an LLC and claim to be an employee there at the same time while doing the 9-5 job?

[@TGIBBSPGA]

Yes.

[@devinvandivier4331]

Hey Brian, I am just starting out and trying to collect as much information as I can. I am confused on day trading and swing trading? I don't have 25k for the PDT, so can I only make 3 trades in a 5 day period or can I swing traded to build a portfolio?

[@cheeses_fries]

So if you want to be classified as a day trader, you would want to fill out the day trading pattern weekly?

[@milkncookie]

Yo, I just found you and you're legit! Love the content, keep em coming!

[@sharhful]

Wow you’re super talented! Thank you for your service 🙏

[@maverick13nyc]

I will be booking with you in the future. I finally went over the 25K and looking to turn my trading into a business. I'm in Kissimmee< FL. Thank you for the information.

[@fitnessrefocus]

Hi Brian, does the 720 minimum volume count trades if I'm using a copy trader? For example, if I buy/sell from a master account which counts as 1 trade and that is copied to a follower account. Would that count as 2 trades total?

[@artistlie3608]

As a new Futures traders... would there be any benefits, when it comes to looking for Trader Status ?

[@mssallyha]

Very informative! I currently have an LLC for my e-commerce business, but also day trade on the side. Can I sign up for a brokerage account under my current e-commerce LLC or would you recommend creating a separate LLc specifically for day trade?

[@timhill1528]

Any update on this? I’m in the same boat

[@TGIBBSPGA]

There is nothing that would stop you from using that LLC to trade. Setting up a separate structure may be better for asset protection.

[@BankofTron757]

Is this the same for Futures Day Trader?

[@sonnysandhu5010]

I am full time trader and meet "BEHAVE" criteria, should i continue to file jointly as a married couple ?

[@felixcrespo4159]

Thank you for your service, what is your MOS. My question I trade daily in Crypto, can I qualify as an active day trader?

[@BrianRiveraCPA]

25A!!! Yep you can trade crypto and qualify!

[@williamsle934]

Yooooo Brian my man! Thanks for your knowledge bro. So do i need file any paperwork or do something to qualify for TRADER STATUS? or they will automatically put me in the trader status?

[@BrianRiveraCPA]

It’s based on facts and circumstances - best practice attach footnotes to your tax return

[@purelovexist]

What I would like to know is how to report the income from trading. Does it show as ordinary income or short term capital gains? And if ST Cap Gains do you have to submit a list of all trades with tax return if is basis is not reported?

[@williamgarrett5774]

do you have to do day trading or trade every day selling option spread for income, I do a lot average more than 4 trades a day

[@alipateryu8071]

Can you qualify for TTS status if you're a forex day trader? I use a offshore broker and they dont report my trading activities.

[@joeavila3]

A - was what again in the BEHAVE test. Thanks and all your vids are very informative

[@BrianRiveraCPA]

Average holding periods not to exceed 31 days

[@idj6858]

Brian, My wife and I are considering doing a consultation with you, where do we book it?

[@Rocky-x8f]

What if you don't qualify for trader status, do you still get the deductions as a business if you swing trade?

[@Forexillion]

Thanks, great video