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Non-Tech : Enhancing Profits Through Incorporating -- Ignore unavailable to you. Want to Upgrade?

To: Little John who wrote (77)	4/2/1997 2:34:00 AM
From: Thomas K. Hatfield	Respond to of 88

John - - Your question is good with April 15 just two weeks away. If I was preparing the returns I would take a deduction for those expenses if there were any personal trades or a personal portfolio and I would be willing to argue that if no personal transactions the deferral of income to a cash basis taxpayer is not reason to deny the deduction; the tax law does not require the matching of income and deductions for cash basis taxpayers (except in certain cases). Disclaimer: Your own CPA should be consulted as only he is fully aware of your situation.

To: Little John who wrote (77)	4/5/1997 11:03:00 PM
From: SE	Respond to of 88

Sorry about the delayed reply. Not really sure I understand your question. If the majority of trades are done in the IRA, then you will have little to no expenses to report on those trades as the expenses are within the IRA as well. Of course you will have the annual maintenance fee, but that is about it. To the extent the expenses deplete your IRA balance, you have deducted them. Did I understand your question or am I off the mark. Scott

To: Little John who wrote (77)	7/14/1998 9:09:00 AM
From: Colin Cody	Read Replies (2) \| Respond to of 88

I realize this post is VERY old, but for those reading now - the answer to the IRA issue is that the premise is wrong. the IRS might object to a expense deduction because all of the income is deferred. An IRA, Keogh, Pension etc. does NOT defer income derived from a trade or business ie. a TRADER. . Such income (in an IRA, pension etc.) is UBTI and subject to very punitive tax rates, other than the annual $1,000 tax-free exclusion. . A TRAP for the unwary, but one that is likely fully disclosed in the teeny tiny print somewhere in your IRA documentation. . Colin