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Trader or Investor Danny Traitor, whose filing status is single, filed his income tax returns for 2 0 2 2 , 2 0 2 3

Trader or Investor Danny Traitor, whose filing status is single, filed his income tax returns for 2022,2023, and 2024 showing ordinary losses of $127,000, $254,000, and $569,000, respectively, from trading bitcoin currency. Danny has a nighttime gig as a disc jockey at various bars in the area generating net profit of $280,000, $330,000, and $395,000 in 2022,2023, and 2024, respectively. Danny spends up to 30 hours a week analyzing, researching, and creating spreadsheets to trade bitcoin. He averages almost 500 executed trades per year. Is Danny a trader or an investor for 2022,2023, and 2024? Why does it make a difference whether he is a trader or investor for these years? (Help: See Endicott, T.C. Memo. 2013-199, and Nelson, T.C. Memo. 2013-259.)

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