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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: LemurHouse who wrote (3184)	12/21/2001 4:45:58 PM
From: Dan Duchardt	Read Replies (1) of 5205

Andrew, Moreover, it is irritating that the IRS considers you to be either one or the other; one cannot be both. As I understand it, if you elect trader status, then all investing gains/losses are treated as shortterm trading activity. That is, even long term capital gains/losses resulting from "investment" activity are taxed as short term. Based on what I have read, this is not true. In fact, it is possible to be a trader without electing mark-to-market accounting that forces you to treat gains as short term. Traders can have investment accounts just like everyone else, even if they do elect mark-to-market (which must be done by April of the tax year; you can't do it at tax time). It is important to distinguish between investments and trading, so it is best to keep the accounts separate. fairmark.com Kaye Thomas used to post on SI, but I've not seen him lately. traderstatus.com Colin Cody still participates on SI and has answered many questions about this issue. If you ask about this he will refer you to the link above, unless you cannot find your answers there. Member 1915633 Dan

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