DAY TRADER TAX STATUS (TTS)

General information Trader Tax Status (TTS) is a tax designation recognized by the Internal Revenue Service (IRS) that allows individuals who actively trade securities as a business to treat their trading activities as a trade or business rather than as an investment activity. This status unlocks significant tax benefits, including the ability to deduct business expenses and, with a Section 475(f) markto-market (MTM) election, convert capital gains and losses into ordinary income or losses, avoiding certain limitations that apply to investors.