In this video, Toby Mathis breaks down what truly defines a day trader, why the IRS makes this classification so complicated, and how the facts-and-circumstances test has shaped the tax landscape for traders.

Because there’s no clear tax code defining trader status, many people end up in court simply trying to prove they qualify.

Register for a FREE upcoming workshop today to learn advances tax strategies and asset protection. Save Your Seat ???? https://aba.link/f4e155

Toby explains the real tax difference between investors and traders, including how investors are limited under Section 212 after the Tax Cuts and Jobs Act eliminated most miscellaneous itemized deductions.

Would you like to learn more about minimizing your taxes? Schedule a free tax consultation here ???? https://aba.link/81047e

Investors can only write off margin interest up to their investment income and have very few opportunities for additional deductions.

Traders, however, operate under Section 162, which allows them to deduct ordinary and necessary business expenses—opening the door to far more powerful tax advantages.

You’ll learn why traders began filing Schedule C, why the IRS frequently audits sole proprietors, how capital gains and losses impact both investors and traders, and what happens when traders try to claim expenses in the wrong place.

???? Don't forget to subscribe for more insights on real estate investing and business strategies!

Show Notes:
0:00 Intro – #1 tax strategy for day traders
1:00 Investors vs. traders and key tax differences
2:20 Schedule C vs. Schedule D and audit risk
3:30 Capital gains, capital losses, and the $3,000 limit
5:31 Mark-to-market election (Section 475) explained
8:31 How to qualify as a trader – the 3 main tests
12:08 The loophole: C corporation + LLC family office structure
15:05 Asset protection, tax savings, and legacy benefits
16:50 Free tax and asset protection training + closing call to action
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TAX TUESDAY LIVE
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Learn a rich selection of subjects like tax and asset protection, business, investing, and more. Our attorneys and other skilled experts will help you learn what you need to know in order to better your chances of success in your professional life.
https://aba.link/tobyevents

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FINANCIAL PLANNING & TAX RESOURCES

???? Order Your Copy of "Infinity Investing: How The Rich Get Richer And How You Can Do The Same" Here: ???????? ???? https://aba.link/IIWbook

Order Your Copy of ”Tax-Wise Business Ownership" and find greater success by taking advantage of tax laws for your business. Here ???? https://aba.link/tobyshop

Visit Anderson Advisor's website for content, like articles, podcasts, and more that we publish alongside my channel. ???? https://aba.link/tobyaba

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CONTACT US
Phone: 800.706.4741
Email: info@andersonadvisors.com
Fax: 702.664.0545

ABOUT TOBY MATHIS
Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at https://aba.link/tobyaba
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WARNING: I will NEVER ask you to contact me through YouTube comments, telegram, or WhatsApp. I have a checkmark next to my name, and my comment will be highlighted. Fake accounts do not have that. Please be aware of fake accounts trying to scam you using my name and picture.

The information provided in this video should not be construed or relied on as financial, investment, or legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.

#daytrading #taxstrategy #stocktrader #stocks #tobymathis

***This webcast originally aired live on Hedgeye.com on January 13th, 2026***

Hedgeye CEO Keith McCullough is joined by economist, tech entrepreneur, and author Dr. Pippa Malmgren for a must-watch edition of Real Conversations.

Pippa believes we are no longer approaching a singular technological turning point. We are already living through a multiplicity of breakthroughs, with massive evolutionary leaps happening simultaneously across technology, money, and society itself. While innovation accelerates at unprecedented speed, public debate remains stuck in outdated left-versus-right frameworks that no longer explain the world. The only meaningful direction, Pippa suggests, is forward or backward.

In this wide-ranging discussion, Keith and Pippa will explore how fast, deep, and transformative today’s innovations truly are, including the evolution of money, shifting power structures, and what these changes mean for economies and markets. This conversation is designed to challenge conventional thinking and reframe how investors understand the future.

Are you looking for a Kingdom-based chamber of Commerce?
Do you want to build your business on Biblical values?
Are you looking for quality education, support, and mentors, to grow your business and make a success?

KCBME is an acronym for Kingdom Chamber for Business, Ministry, and Education. KCBME offers its members far more than meet-and-greet sessions.

We believe in the power of Right Knowledge and Right Application. Without these, businesses will flounder and individuals will struggle to achieve true lasting success. Our mission is for every members to become financially free to serve their families and communities with practical wisdom, a love of God, and a lasting positive impact.

Learn more at:

https://KCBME.com

KCBME is an acronym for Kingdom Chamber for Business, Ministry, and Education. KCBME offers its members far more than meet-and-greet sessions.

We believe in the power of Right Knowledge and Right Application. Without these, businesses will flounder and individuals will struggle to achieve true lasting success. Our mission is for every members to become financially free to serve their families and communities with practical wisdom, a love of God, and a lasting positive impact.

Learn more at:

https://KCBME.com

"My people perish for a lack of knowledge," Hosea 4:6.

Maybe its time to your about your own slavery!

Ignorance may be our greatest risk. Many speak of the Kingdom, but few understand its true power and potential to transform lives, our faith, families, and future.

Check out our playlist:
https://www.youtube.com/playlist?list=PLKdUe5NSBQigAqsuoZSQmobd-aQDFtLIV

Brought to you by:

* The ministry of the Empowered Kingdom at
https://EmpoweredKingdom.com

* 1 Kingdom University at
https://1KingdomUniversity.com

All rights reserve. Use is at own risk. For education purposes only.
EmpoweredKingdom.com

"My people perish for a lack of knowledge," Hosea 4:6.

You need to learn about ignorance!

So that you can know how you are outsmarted.

Ignorance may be our greatest risk. Many speak of the Kingdom, but few understand its true power and potential to transform lives, our faith, families, and future.

Check out our playlist:
https://www.youtube.com/playlist?list=PLKdUe5NSBQigAqsuoZSQmobd-aQDFtLIV

Brought to you by:

* The ministry of the Empowered Kingdom at
https://EmpoweredKingdom.com

* 1 Kingdom University at
https://1KingdomUniversity.com

All rights reserve. Use is at own risk. For education purposes only.
EmpoweredKingdom.com

The second interview with Zoom Nguyen of Empowered Brokerage. Zoom is a sales director of Empower Brokerage, a leading brokerage in the US.

"When you deliver the check ... that is when you realize how important this work is. At that moment, you are the most important person in a family's lives." - Zoom Nguyen.

Wealth, and financial security are not an accident. Fairy dust from the sky does not make us financially secure. Proper planning, so that we can take right action does. Wealth is supposed to be passed on from one generation to the next. However, this requires wisdom, planning, and the application of the right strategy.

Learn to do this the right way.
Learn to set your family free, forever - safely, and securely.
Call us.

1 Kingdom Life (. com)

An interview with Zoom Nguyen. Zoom is a sales director of Empower Brokerage, a leading brokerage in the US.

"When you deliver the check ... that is when you realize how important this work is. At that moment, you are the most important person in a family's lives." - Zoom Nguyen.

Wealth, and financial security are not an accident. Fairy dust from the sky does not make us financially secure. Proper planning, so that we can take right action does. Wealth is supposed to be passed on from one generation to the next. However, this requires wisdom, planning, and the application of the right strategy.

Learn to do this the right way.
Learn to set your family free, forever - safely, and securely.
Call us.

1 Kingdom Life (. com)

Ever feel like your money disappeared faster that a bag of chips at a family BBQ?

"A good man leaves an inheritance to his children's children.
- Proverbs 13:22.

Wealth is supposed to be passed on from one generation to the next. However, this requires wisdom, planning, and the application of the right strategy.

Learn to do this the right way.
Learn to set your family free, forever - safely, and securely.
Call us.

1 Kingdom Life
https://1KingdomLife.com
Ethical Kingdom Trader
https://EthicalKingdomTrader.com

"A good man leaves an inheritance to his children's children.
- Proverbs 13:22.

Wealth is supposed to be passed on from one generation to the next. However, this requires wisdom, planning, and the application of the right strategy.

Learn to do this the right way.
Learn to set your family free, forever - safely, and securely.
Call us.

1 Kingdom Life (. com)

Trading is a powerful way to take financial control of your life!

However, it must be the right way!

Most approach trading in a way that is similar to gambling at a giant casino. They hope they win, but often lose. The scale tips heavily towards the lose side when you do not know what you are doing.

Hosea stated, "My people perish for a lack of knowledge."

There are plenty of people who will teach you to trade like playing the casino. Are there any who will teach you to apply Biblical wisdom so that you can grow your wealth safely, and securely?

Learn to trade the right way at:

Ethical Kingdom Trader
https://EthicalKingdomTrader.com