I've already had this discussion/topic with my tax advisor. For me, however, it was about future trading with leverage. This could be critical as you are trading with borrowed capital and this may fall under commercial trading. Unfortunately, you generally fall under the progressive tax rate.
For normal day trades/swing trades, my tax advisor said that this is not a problem. You are classified as commercial if you trade for others. Or with money from others.
A lot of factors have to come together for you to be classified as a trader, for example if you have a job in finance or something like that.
That was the decision of my tax advisor.
But personally, I'm not too worried about being classified as a commercial business.
For normal day trades/swing trades, my tax advisor said that this is not a problem. You are classified as commercial if you trade for others. Or with money from others.
A lot of factors have to come together for you to be classified as a trader, for example if you have a job in finance or something like that.
That was the decision of my tax advisor.
But personally, I'm not too worried about being classified as a commercial business.
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@Philsn Thanks for the info - I have the advantage that I only trade shares, which makes it safer. I also only trade for my own account, and I don't yet use the margin account that the broker offered me. I've toyed with the idea of trading shares "short" a few times recently, but have still left it alone - probably better this way - cobbler stick to your last!
May I ask which broker you are with? I use Interactive Broker for US stocks, and the tax report was the reason for the discussion.
May I ask which broker you are with? I use Interactive Broker for US stocks, and the tax report was the reason for the discussion.
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•Yes, that's true, but I have to say that 90% of my short-term trading is in equities. I've never shorted a position myself😂 Always just long. It's easier for me to recognize an uptrend than a downtrend. I only use Flatex for shares because it's very easy and I haven't wanted to deal with it myself yet. For cryptos I trade on Bitpanda which is my buy and hold investment also because of the tax simplicity. For short-term trades/futures I use Bitget and calculate the taxes via Blockpit and then enter them myself.
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