Trader

Trader means:
a person who actively buys and sells securities in such a volume as to constitute a trade or business for tax purposes. A trader does not have an investment expense limitation and is not subject to the 2% floor for miscellaneous itemized deductions or the 3% phase-out of itemized deductions for taxpayers with high Adjusted Gross Incomes. A trader's expenses are treated as business expenses, including business casualty losses. A trader is still subject to capital gain and loss treatment and is exempt from self-employment taxes.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.