Cody,
Is your hobby perusing thru my comments to find DEFICIENCIES???
OK, here we go:
Question #1.
Per Sec 163(h) of IRC, beginning in 1991 a deduction is not allowed for personal interest expense. Then it cites examples of personal interest expense: interest on credit-card debt, most finance charges, revolving charges and lines of credit, car loans, tax underpayments, student loans, medical fees.
Question #2.
First of all, I hope you'we read Yiwu's full message. If you did, it's pretty obvious that he's implying that he wants to treat credit-card debt just like margin interest. Well...anything that's called "MARGIN" interest should have a collateral (or MARGIN) behind it. Credit-card debt in most cases has no margin, and therefore, cannot qualify as MARGIN interest. NOw, I didn't imply that ANY INVESTMENT INTEREST DEBT has to have a collateral to qualify for Investment Interest Deduction.
You are the one who turned it upside down. My point concerned strictly the credit-card interest and its relationship to margin interest.
And, additionally... going back to WASH SALE RULE, specifically: can a trader be exempt from a wash sale rule?
The answer is "yes" per Sec 1091(a). Also, see Reg. 1091-1 and a Court Case titled P.G. Nevitt, 20 TC 318, Dec. 19,652.
Sec 1091(a) says: only an individual who is a trader or a dealer, or a corporation which is a dealer, is exempt from wash sale provisions.
OK, it's your turn to rebuff!!!
P.S. For those interested I have also done some research on identification of multiple blocks of stock sold. There are some very strict rules that need to be followed. You may get in trouble if IRS audits you. I'll field the specific questions, if anybody's interested. |
