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

To: Gorak Shep who wrote (2392)	11/15/1999 1:27:00 AM
From: Colin Cody	Read Replies (2) \| Respond to of 5810

Gorak, I believe this reoccurring issue arises because over the years many well-meaning (but unaware) tax experts have opined "authoritively" that in fact since trader status is a "trade or business" and since the net income from a trade or business is subject to SECA tax (when the net income is greater than $400 per year) that therefore income under trader status is subject to SECA tax. Sounds logical... to them. Unfortunately for these experts, so many things with trader status are 180 degrees away from "what's normal" and nothing could be further from the truth. (see IRS Code §1402(a)(3)(A)). It is a shame that clients of their's needlessly pay taxes year after year that they are not liable for and that the I.R.S. does not want to collect. Don't believe me? Here's an authoritative web page from just one such self-described "respected and well known expert": individualinvestor.com Unbelieveable? Yes it is! ;-)) Colin Cody, CPA traderstatus.com