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As previously discussed, trader status is not for everyone.
As an alternative, you can of course carry the loss in excess
of $3,000 forward to future years but you can also carry BACK
Section 1256 losses 3 years.
Section 1256 contracts are regulated futures contracts and
non-equity options (and a couple other items). There are
special rules about how to do this and it requires filing
amended returns, but they are not difficult.
If anyone ends up with a losing year this year, significantly in
excess of $3,000, gains in some or all of the previous three years,
and doesn't want to simply carry the loss in excess of $3,000 forward
they might want to consult their tax advisor. If you had a loss last
year and were not aware of the carryback when you filed, you might
want to explore it with your tax advisor.
Caution: I am NOT a tax advisor and this is not tax advice,
just food for thought...
Tom T.
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