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    mathew68's Avatar
    mathew68 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jun 29, 2008, 11:20 AM
    H1B and a trader in securities
    I am an active stock and options trader and would like to know whether I can classify myself as a trader in securities for tax purposes. I am currently on an H1B visa. Any help in this matter would be greatly appreciated. Thanks.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Jun 29, 2008, 10:51 PM
    What are expecting to gain by classifying yourself as trader?
    mathew68's Avatar
    mathew68 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jun 30, 2008, 07:58 AM
    I believe it would be beneficial for tax purposes to mark my positions to market and to avoid the wash sales rule? Also, I would like to deduct the margin interest expenses I have incurred. I believe I cannot do that if I am not classified a trader? Thanks in advance for any insight.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jun 30, 2008, 11:45 AM
    Actually, you CAN deduct margin interest if you itemize.

    It is VERY HARD to convince the IRS that you are engaged as a trader as a business (filing Schedule C), especially if you are drawing a salary under a W-2.

    Further, doing so would probably be a violation of the terms of your H-1B visa.
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