Hillel Nadler

It looks like it would still be available if they file separately - there's an ambiguous reference to "rules similar to the rules of section 32(d)", which says that for EITC purposes somone is only treated as married if they file jointly.

If they were dealers, then their income would all be ordinary, so that can't be the argument.

Making Markets, Making Trouble? | Tax Notes Matthew A. Stevens and Huvie Weinreich consider when a market maker might be treated as a dealer in securities for purposes of section 864(b)(2).

There's a nice discussion of the difference in this recent TaxNotes piece, in the context of section 864 (dealing is a U.S. trade or business, trading isn't): www.taxnotes.com/tax-notes-fe....

That piece is available here: papers.ssrn.com/sol3/papers....

Does the U.S. Have to Be a Tax Haven? | Tax Notes Reuven S. Avi-Yonah argues that the United States would still be an attractive destination for foreign investment even if it imposed taxes on investors.

Thanks to Reuven Avi-Yonah for highlighting my earlier piece with Ken Austin on the U.S. as a tax haven for foreign investors: www.taxnotes.com/tax-notes-fe...