Option Spreads, Credit my Debit Message Board

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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: jjs_ynot who wrote (1801)	11/26/2000 8:55:28 PM
From: KFE	Read Replies (1) of 2317

Dave, Is there any advantage to claiming trader status? It seems that 1256 options are the only vehicles affected. Section 1256 contracts and trader status are two separate and unrelated issues. An advantage of trader status is the deduction of trading expenses on Schedule C rather than Schedule A where there are restrictions and limitations on their deductibility. If trader status is claimed then you have the option of electing to mark to market with the advantage of the wash sale rule not applying and loses can be taken over $3000. Not so easy to qualify for trader status though. If you want to look into it further then try the following link. traderstatus.com I can't guarantee the accuracy of the site but he says that he is a tax professional specializing in traders and the posts of his I have read confirm that he knows what he is talking about. Very few tax professionals are knowledgeable in the area of option tax consequences. Before the changes in the tax code it was possible to defer capital gains forever using option strategies. Regards, Ken

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