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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: wiztor who wrote (2390)	11/14/1999 10:31:00 PM
From: Colin Cody	Read Replies (2) \| Respond to of 5810

HK, While there are certainly "SEC compliance rules" for those not covered under the SEC definition of someone who is a non-professional trader i.e. someone who is identified as a professional trader ...this has no direct bearing on the taxation of the profits or losses incurred by the taxpayer. Specifically, if I understand your concern: an SEC identified "professional trader" does not owe SECA taxes on his capital gains or other gains or profits realized or recognized from his trader status activity in buying and selling marketable securities. Pursuant to the 1934 Act, and again restated in the 1997 Act such a taxpayer does not owe SECA taxes. Basically it is DEALERS, "Market Makers" who owe SECA tax. The significant criteria being the so-called "to customers requirement" and not the SEC "professional trader" classification. Colin traderstatus.com