Pierre, Trader Status is NOT a set of IRS forms. Trader Status is NOT something you "elect" to file as. Trader Status does not necessarily require you to register as a "business, done with filings outside of the IRS", although this would not hurt, and could help!
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Trader Status is a CONCEPT, based on FACTS and CIRCUMSTANCES, as determined by the COURTS. For this reason you should retain the services of a Tax Attorney or CPA who has experience with the concepts of Trader Status.
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Such representation should cost you $1,000 and up per year (possibly).
Obviously you would only incur this kind of professional fee if your trader status benefits were SUBSTANTIALLY more than $1,000.
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If someone merely has a $1,999 PC and $240 in ISP costs they want to write-off (for example), it wouldn't make sense to pay a pro to represent them, necessarily. i.e. worst case is the IRS would disallow the $2,239 deduction. (big deal).
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A TRUE business should LOOK like a business. A Business HAS a CPA, or other representation. A Business HAS an office. A Business is SERIOUS, full-time, profitable, organized, etc.
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Good Luck!
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Colin |
