IRS, Tax related strategies--Traders Message Board

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Strategies & Market Trends : IRS, Tax related strategies--Traders

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To: Colin Cody who wrote (458)	8/20/1998 4:10:00 PM
From: RookieTrader	Read Replies (1) of 1383

So let's get this straight. If I elect "Trader Status" (which is IRC 179 if I am not mistaken ?) I can only deduct a loss of up to $3000 on Schedule D? But! If I elect 475 (f) Mark to Market method of accounting I can deduct unlimited TRADING losses? OK if this is correct.then let's say I elect 475 (f) Mark to Market and I have a loss of $9,000. Do I still put all my trades on Schedule D? Or is it that the Mark to Market method would make my gains "ordinary" and I would simply put EVERYTHING on Schedule C? And if all trades went under Schedule C, would I have to worry about SE tax ? Where or how would I put my trades? Where (i.e. what lines) I would put my expenses and margin interest on Schedule C? Is there a limit to my expenses? What do you guys think the chances are that the IRS will sort out the "trader status" thing and make it into IRC and then inturn make it easier for us to file for 1998? Thanks! RookieTrader

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