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To: rocklobster who wrote (4680)	10/26/2000 2:44:53 PM
From: pooh	Respond to of 8046

Hi Rock, it's just a personnal opinion. I don't really mind paying tax like everyone else. It's just the wash sale rule that I don't like. I don't know why, and never did bother to find out, there is such rule anyway. Uncle Sam needs our tax to survive, just like we need incomes to keep the house. We may not agree with the way the good uncle spends the money, but heck, I don't need more than couple pairs of shoes either <g>.

To: rocklobster who wrote (4680)	10/26/2000 2:48:39 PM
From: bobby is sleepless in seattle	Respond to of 8046

if one can qualify for mark to market status,,,very ez to so,,,, strongly urge to consider this classification... it's treated as a business, relative expenses deductible,,,AND NOT subject to self employment tax...please verify unearned income is beautiful... smartmoney.com If you've passed these mushy hurdles and qualify as a trader, here’s your reward. According to the tax law, traders are in the business of buying and selling securities. From the IRS’s perspective, you are self-employed, meaning you can deduct all your investing expenses on Schedule C, like any other sole proprietor. This is great, because investors have to account for these expenses on Schedule A, where they can write off only the amount that exceeds 2% of their adjusted gross income. Plus Schedule C writeoffs reduce your adjusted gross income, which raises the odds that you can fully deduct all your personal exemptions and other tax goodies. You can also deduct your margin account interest on Schedule C and probably take an immediate writeoff of up to $20,000 ($19,000 for 1999) for equipment used in your trading activities more than 50% of the time (computer stuff, desk, bookshelves, fax machine, etc.; it’s called a Section 179 writeoff). Home-office deduction? Sure, as long as you use the space regularly and exclusively for trading and the deduction doesn’t throw you into a net loss position. Finally, you don’t have to pay self-employment tax on your net profit, because capital gains are exempted. All in all, a pretty good deal. If you’re a trader, you will still report gains and losses on Schedule D, and can still deduct only $3,000 in net capital losses each year. All this makes for a pretty funky-looking tax return. Schedule C will have nothing but expenses and no income, while your trading profits (we hope) will end up on Schedule D. I recommend attaching a statement to your tax return to explain the situation.