Uploaded May 2026 | Updated September 2026, 2 weeks ago
Trader Status has far more tax-saving potential than most investors realize, going well beyond basic investment deductions in this insightful conversation with tax experts Toby Mathis and Jeff Cottle from @andersonadvisors
Interested in learning more about tax strategies for traders? Schedule a free consultation here 👉 aba.link/rdqm
Learn the key differences between an investor and a trader under IRS rules and why qualifying for Trader Tax Status can allow you to deduct expenses like software, education, and trading equipment.
This video breaks down how active traders can potentially save thousands in taxes by being treated as a business instead of a passive investor.
If you trade stocks, options, or crypto, this is essential tax planning information you need to know.
Show Notes:
0:00 Intro
3:32 The Problem With Investment Expense Deductions
4:37 How the IRS Defines a Trader
6:20 Why Trader Status Often Fails in Tax Court
8:45 What Expenses Traders Can Write Off
10:00 Can Traders Deduct Trading Losses?
11:45 Mark-to-Market Election Explained
13:05 The Hidden Risks of Mark-to-Market Accounting
15:00 Investor vs Trader vs Mark-to-Market Comparison
16:40 The “Unicorn” Strategy Using Business Entities
18:00 How a C Corporation Management Structure Works
20:00 Reducing Taxes With Management Fees
23:00 Guaranteed Payments to a Corporation Explained
26:10 Asset Protection Benefits for Traders
28:00 Estate Planning With LLCs and Trading Accounts
29:20 Final Thoughts
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FREE TAX & ASSET PROTECTION WORKSHOP
Register for an upcoming workshop today if you want to protect your business and personal assets from snoopy lawyers and creditors. Save Your Seat: aba.link/658942
~~~~
FOLLOW US:
Instagram: aba.link/instagram
Facebook: aba.link/facebook
Twitter: aba.link/twitter
LinkedIn: aba.link/linkedin
TikTok: tiktok.com/@tobymathisesq
~~~~
CONTACT US
Phone: 800.706.4741
Email: info@andersonadvisors.com
Fax: 702.664.0545
ABOUT TOBY MATHIS
Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at aba.link/tobyaba
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WARNING: I will NEVER ask you to contact me through YouTube comments, telegram, or WhatsApp. I have a checkmark next to my name, and my comment will be highlighted. Fake accounts do not have that. Please be aware of fake accounts trying to scam you using my name and picture.
The information provided in this video should not be construed or relied on as financial, investment, or legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#StockMarketTaxes #DayTrader #OptionsTrading
Trader Status has far more tax-saving potential than most investors realize, going well beyond basic investment deductions in this insightful conversation with tax experts Toby Mathis and Jeff Cottle from @andersonadvisors
Interested in learning more about tax strategies for traders? Schedule a free consultation here 👉 aba.link/rdqm
Learn the key differences between an investor and a trader under IRS rules and why qualifying for Trader Tax Status can allow you to deduct expenses like software, education, and trading equipment.
This video breaks down how active traders can potentially save thousands in taxes by being treated as a business instead of a passive investor.
If you trade stocks, options, or crypto, this is essential tax planning information you need to know.
Show Notes:
0:00 Intro
3:32 The Problem With Investment Expense Deductions
4:37 How the IRS Defines a Trader
6:20 Why Trader Status Often Fails in Tax Court
8:45 What Expenses Traders Can Write Off
10:00 Can Traders Deduct Trading Losses?
11:45 Mark-to-Market Election Explained
13:05 The Hidden Risks of Mark-to-Market Accounting
15:00 Investor vs Trader vs Mark-to-Market Comparison
16:40 The “Unicorn” Strategy Using Business Entities
18:00 How a C Corporation Management Structure Works
20:00 Reducing Taxes With Management Fees
23:00 Guaranteed Payments to a Corporation Explained
26:10 Asset Protection Benefits for Traders
28:00 Estate Planning With LLCs and Trading Accounts
29:20 Final Thoughts
---------------------------------------------------------------------------------------------------------
FREE TAX & ASSET PROTECTION WORKSHOP
Register for an upcoming workshop today if you want to protect your business and personal assets from snoopy lawyers and creditors. Save Your Seat: aba.link/658942
~~~~
FOLLOW US:
Instagram: aba.link/instagram
Facebook: aba.link/facebook
Twitter: aba.link/twitter
LinkedIn: aba.link/linkedin
TikTok: tiktok.com/@tobymathisesq
~~~~
CONTACT US
Phone: 800.706.4741
Email: info@andersonadvisors.com
Fax: 702.664.0545
ABOUT TOBY MATHIS
Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at aba.link/tobyaba
---------------------------------------------------------------------------------------------------------
WARNING: I will NEVER ask you to contact me through YouTube comments, telegram, or WhatsApp. I have a checkmark next to my name, and my comment will be highlighted. Fake accounts do not have that. Please be aware of fake accounts trying to scam you using my name and picture.
The information provided in this video should not be construed or relied on as financial, investment, or legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#StockMarketTaxes #DayTrader #OptionsTrading
