One of the great things about trading is that all you have to do to become a trader is get started. Many people trade as a hobby, while others trade full-time to make a living, and then there are some traders who fall somewhere along that spectrum with their activities.
Depending on how much and how often you are trading, you may be able to reap certain benefits when tax time comes around. If you’re a serious, dedicated day trader, then claiming active trader tax status is your best option for maximizing your deductions and minimizing your losses. But how do you qualify for this elite tax category? Let’s take a look.