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Strategies & Market Trends : The Amateur Traders Corner

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To: allen menglin chen who wrote (5644)1/25/2001 11:43:32 AM
From: Roger A. Babb  Read Replies (1) of 19633
 
Allen, the IRS is causing big problems for many traders. It always happens when a good year is followed by a bad year. The wins of the good year are fully taxed, but the losses of the bad year can only be written off slowly ($6000 per year) for the bad year against other income. Sure the trader could write the losses off against future year stock profits IF he has any portfolio left to generate profits! It is not a zero sum game on profits and losses with the IRS.
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