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To: Ron McKinnon who wrote (22707)	3/26/2000 8:18:00 AM
From: Ron McKinnon	Read Replies (3) \| Respond to of 53068

"trader status" for IRS someone asked me in private about this I thought I'd respond in public but, I have no idea if I am right and caution everyone to get "real" advice before considering this extracts of the PM: >>>have heard many pros and cons. for me I only see "pros" but there may well be cons for many people >>>according to folks that claim to have knowledge of the tax laws, is trader status is a red flag to the IRS and you're asking for an audit. My opinion is as long as you have records of all allowable deductions you should be ok I in no way want an audit but my taxes are "clean" I frankly don't think it is worth the risk to mess around to save a few bucks, as much as I hate giving the IRS a penny the deductions I take are straight forward: isp + phone lines quote and data service costs financial subscriptions-dead tree as well as on-line office costs; paper (BCT), pens, ink, etc (I do not take a home office deduction, not worth the audit risk) equipment, computers, monitors, etc ie, whatever I use in my trading job >>>there is no absolute definition of what a "trader" is I think that this is true but it is defined enough that if one really is a full time trader one should be ok on this I make 1000's of short term trades and spend 10-12 hours at this a day; have the records to back that up >>>In order to file trader status does trading securities have to be your primary source of income? In other words can someone have a 9-5 job and trade on the side and still file as trader? I'm not sure, but would think that if the income from trades is a significant % of your total income (maybe 60% or more--a guess) that you would be ok I switched to trader status once my trading income significantly exceeded my consulting income >>>Plus can you have "long term" stocks(hold period for 12 or more months) along with short term trading? Separate accounts for each? I have a number of accounts, in addition to my "day trade" account, which are many times greater in size (I keep my day trade account "small", mainly because that does not allow me to get big stupid on a fast trade and blow a bunch of money, something I had been know to do in the past) the other accounts vary in duration for trades--some day trades, some for multi year holds but they are all tax deferred vechicles-rollover IRA, SEP-IRA, IRA I don't see any conflict between being being a "trader" for tax purposes while doing long term investments in other accounts I hope this helps but please do not make any tax decision based on what I or anyone else here posts

To: Ron McKinnon who wrote (22707)	3/29/2000 8:27:00 AM
From: Nemer	Read Replies (2) \| Respond to of 53068

Fishyman --- one covered 13 years and was over 20 feet long (taped side by side I guess times do change LOL I, too, was doing some cleaning yesterday in the garage ... found some of my horse racing jockey data. There were four pretty good size containers (actually half case cigarette boxes) and all of them full of hand drawn tape charts ...... yes sir, those 20 footers of yours were kin to mine ...... hehehehe Now I can generate the same thing from one of these computer boxes in seconds ..... of course, it takes me nearly forever to write the program to have the CPU spit it out mucho rapido..... I know you're anxiously awaiting a before market report on SPY ==== short from 152 1/2 with cover at breakeven DIA === short from 110 1/2 with cover at breakever QQQ === short from 117 1/2 with cover at 116 Crappie are biting hard on white jigs and shiners in three feet of water Blacks are hitting spinners and jigs in five feet Stripers are schooling early and late and best caught with slabs, little georges and baby torpedos have to mow the grass today for the third time this year ..... has the snow all melted in your front yard yet ???????? If there is anything else you need, don't hesitate to ask.... Tony