He buys and holds his investments for longer periods of time. U.S. Government forms, are PDF files and require Adobe Acrobat Reader for viewing Investor reports the trading activities from his investments on Schedule D of his 1040. Based on the length of hold on his position, the resulting capital gains are then taxed at either long term or short term capital gains rates. He may carry forward additional capital losses indefinitely, but cannot carry them back. Capital gains and losses are governed by the IRS Publication 550 .
Investor is also subject to the wash sale rules .
These are reported on Schedule A of 1040. Investor generally does not qualify for the Home office deduction . See some case law examples of investor vs trader determinations. Back Information on these pages is just that, information. It does not constitute taxation or legal advice.