On schedule D form 1040 Captiol gains & Losses, how do you treat your trading as a business and not investing?

I realize that if you trade full time and buy and sell stocks multiple times a day, full time you can claim this as a business instead of investor status. So on my taxes how do I set this up to treat my trading to be treated by the IRS as a buisness?

Public Comments

1. You don't file the trading a Schedule D, but on a Schedule C. Gross receipts is the total sum of sales made. Cost of goods sold is the total sum of all securities bought and then sold (exclude any you have on hand at the end of the year). You can then deduct any other expenses incurred in the operating of your business. You will pay self-employment taxes on the profit..
2. IF you qualify as a day trader, then you report your expenses on schedule C instead of schedule A. If you have NOT done the mark to market election, you CONTINUE to list your trades on schedule D. If you have make the mark to market election (due by 4/15/2007 for tax year 2007), then you put totals for the trades on form 4797. You do NOT pay SE Tax for day trading. Qualifying as a day trader is a facts and circumstances issue.
3. I forget a lot about the schedule D form..... ... but the simple basics of taxes are: if you are going to claim work deductions and losses working as an investor, you also have to declare your gross income for the year... ... you may even be able to get better refunds just declaring it as 1099 "extra income" .. and then deduct all the expenses you incur trading.