Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: djia101362 who wrote (35231)	4/3/2001 4:19:18 PM
From: TimeToMakeTheInvs	Read Replies (1) \| Respond to of 65232

DJIA, I thought you had to make such an election 1 year prior to actually using such a device on taxes. Is this incorrect? Thanks. tim

To: djia101362 who wrote (35231)	4/3/2001 5:02:16 PM
From: J. C. Dithers	Read Replies (2) \| Respond to of 65232

There is another risk in electing to be a trader rather than an investor. (Disclaimer: I am no tax expert, but this was pointed out to me by someone who is). The risk applies to anyone whose trading includes IRAs or other tax sheltered accounts. By electing trader status, you acknowledge that you are trading as a profession. IRS rules prohibit using tax sheltered funds to conduct a business. The possible consequence is that you could lose your tax sheltered status in the retirement accounts. You could argue that you only are a trader in your non-IRA account(s), but an ordinary investor in the IRAs. But for myself, I considered this to be much too much of a chance to take. As you pointed out, anyone considering this should definitely get advice from a tax professional. JC