I trade options almost every day through my LLC. Does that automatically make me a trader for tax purposes?
I live in Singapore and use a Wyoming LLC for an active options account. I trade most weekdays and my holding periods are usually short, so I have been casually calling myself a trader. The problem is that once I started reading IRS guidance, it seemed like daily activity alone might not be enough if the rest of the facts do not line up.
I want to understand what the IRS is actually trying to see when it separates a trader from an investor. If I am going to use the trader label, I want the records and reporting posture to support it rather than just repeating the term because the account is busy.
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