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To: Robert A. Green, CPA who wrote (3354)	3/12/1998 4:45:00 PM
From: Colin Cody	Read Replies (2) of 12617

Robert & All, We discussed this last month on another thread... until I started posting THE HARD QUESTIONS and you went away for a few weeks. . It is CLEAR that the tax law regarding Day Traders DOES NOT say:- " you are entitled by the IRS to deduct your entire economic trading losses at year-end December 31, 1997, against all your other gross taxable income". . Not in General terms, that is. Sure there COULD be the case in a very, very unique situation, but about 99%+ of the STOCK TRADERS absolutely may NOT do what you have implied! . Before you scurried off last month you posted that my opinion above has to do with retaining "an aggressive CPA" to represent you. IMO, that's B*LLSPIT! While the law was poorly drafted at first, IT IS STILL CLEAR that a taxpayer MAY NOT deduct 100% of his losses under the new mark-to-market rules and NOT be potentially subject to severe IRS penalties for both taxpayer negligence and for preparer penalties as well. . I am not here to solicit S.I. member's business (although I do practice Tax Planning and Preparation in CT) so let me just start with a word to the wise for S.I. members -- to just read the law yourself, or tell your CPA to opine on the law (below). . Keep in mind, even if you convince your CPA to take 100% of your losses this year you PERSONALLY will be the one who the IRS goes to for any tax underpayment penalties! . See Title X-Revenues; Subtitle A-Financial Products; IRC Sec 475(f)(3)(d)(1) and IRC Sec 475(f)(3)(d)(4)(B)(ii) for CLEAR reasons to not just WALK, but RUN from anyone telling you you can deduct 100% of your trading losses (in excess of the normal $3,000 limit) for 1997. . Good Luck!! . Colin

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