Hi, I need help with essay on Income tax accounting. Paper must be at least 500 words. Please, no plagiarized work!Download file to see previous pages... An investor is not subject to self-employment

Hi, I need help with essay on Income tax accounting. Paper must be at least 500 words. Please, no plagiarized work!

An investor is not subject to self-employment tax (Internal Revenue Service, n.d. b).

Special rules apply for traders in securities who are in the business of buying and selling securities for their own account tax (Internal Revenue Service, n.d. b). According to the Internal Revenue Service (n.d. b), to be engaged in business as a trader in securities, all of the following conditions must be met:

Further, a taxpayer may be a trader in some securities and hold other securities for investment. The special rules for traders do not apply to the securities held for investment. A trader must keep detailed records to distinguish the securities held for investment from the securities in the trading business. The securities held for investment must be identified as such in the trader's records on the day he or she acquires them (Internal Revenue Service, n.d. b).

The limit on investment interest expense, which applies to investors, does not apply to interest paid or incurred in a trading business. Commissions and other costs of acquiring or disposing of securities are not deductible but must be used to figure gain or loss upon disposition of the securities.