For tax purposes, can one say they are in the business of stock trading when the only stock traded is that bought and sold for themselves and can they then consider any gains/losses and dividends to be self-employment income? If not, why is this different from a "little guy" buying items from a wholesaler, selling it in the retail market,and then claiming this as a business? If it can be done, does the person need to be a licensed broker?

As a general comment; income from one's labors only is considered "earned" income; whereas income derived from an asset, albeit deployed using one's brainpower, is considered "unearned" income. Only "earned" income can be treated as "Self-employment" income.

Further, why would you want to consider your trading gains/losses as well as interest & dividends as "self-employment" income? To do so would subject yourself to self-employment taxes (FICA / Medicare / FUTA / SUTA) and the sum of these taxes is very material and there are insufficient deductions (let's say a pension plan) elsewhere to offset these taxes.

TheBadger