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Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: monu who wrote (11974)	5/1/2000 7:33:00 AM
From: Vendit™	Respond to of 19374

Joe I have several friends who file under trader status. Neither are day traders. Perhaps one of them will read your question to me and offer up some additional advise but I do know they are enjoying certain tax savings because of their filing status. Welcome to the thread, Reid

To: monu who wrote (11974)	5/1/2000 8:53:00 AM
From: Guardian	Read Replies (1) \| Respond to of 19374

trader status is something you must establish with irs and be able to defend. Key requirements involve the segregation of short term trades (lt 1 year) into a separate account from LT investments,the overall frequency of trades, and the fact that your intent is to profit from share price gains and not from dividends or interest. one also must demonstrate consistent market activity and not simply on and off trading outside your regular employment. the key advantage to trader status is expensing on schedule c. at 70 trades per year, you appear eligible unless the amount in your trading account is very large in relation to trading transactions. get the green manuals-well worth it imo. the second advantage involves changing to mark-to-market accounting which removes the limit loss of 3000/year and wash sale tracking. unrealized gains/losses at year end are applicable as are normal trades, with a new cost basis for holdover inventory on jan 1st. I have done both and have filed as such for past 2 years. works great for tech trading where significant losses are possible. good luck the second issue