Booyah Breakdown: Taxes for Traders II

Editor's note: As a special feature for March, TheStreet.com offers an ongoing series on everything you need to know about taxes. Today is part six.

OK, pour yourself a drink (a stiff one!) and settle in. We've got some heady tax stuff to talk about today.

Last week we talked about the differences between investors and traders for tax purposes. In a nutshell, it's basically the difference between hobbyists and professionals. Investors invest to increase wealth, but it's really a sideline to their day jobs. For traders, trading is their day job. It puts bread on the table and pays the rent. ...