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I think you're wrong, Phil. Check Tesser's books. Also, I have been filing
this way for quite a while and the IRS agrees that I am filing correctly.
Capital gains/losses are reported on Schedule D, not Schedule C, in spite of
their status as trading gains/losses. Therefore, losses are NOT
deductible against other income in excess of $3000.00 and you DO get the
benefit of the 60/40 split as well as the advantage of the special Schedule
D tax calculation procedure.
Carroll Slemaker
----- Original Message -----
From: Phil Lane <accumulator@xxxxxxxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Wednesday, September 15, 1999 6:13 AM
Subject: trader status gotcha
> Trader status is great if you have short-term losses in excess of $3000
and
> you'd like to use them against other income.
>
> However, just in case somebody actually MAKES MONEY trading, trader status
> will cause all your trading income to be taxed at the VERY HIGH short-term
> rate - you lose the 60/40 split. And also once having elected trader
status
> you can't go back again without a major hassle!
>
> This is my understanding - pls correct me if I'm wrong..
>
> phil
>
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