Income Taxes and Record Keeping ( tax ) Message Board

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Strategies & Market Trends : Income Taxes and Record Keeping ( tax )

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To: Daphne who wrote (1687)	12/30/1998 11:53:00 PM
From: Colin Cody	Read Replies (1) of 5810

Hi Daphne, hope you had a good year trading! Was the last half as good as those first few months? Assume TP is filing Sch. C as A Trader. #1. For the purposes of the sec. 179 deduction which of the following would be considered income figure for Taxable income limitation: Capital gains\losses, dividends, interest, capital loss carryforwards, Sch c bus. expenses from trading, loss from sale of business property form 4797? You have a good question and a good starter list. This is not a black and white issue. It is for each taxpayer, her tax advisor and the IRS to determine under the circumstances. Generally Sec 179 is limited to the taxable income derived from the active trade or businesses of the taxpayer and spouse. That would generally preclude any Dividend or Interest Income. It would also likely not include carry-forward losses from a prior year. It would most certainly include most if not all of your Trader Sch C expenses. #2 Can the Sec 179 deduction create a net loss on the sch c ? Depends on the taxpayer. Generally you must have income (see your question above) Colin

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