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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: djj who wrote (16237)	4/14/2001 4:00:17 PM
From: Goodale	Read Replies (1) \| Respond to of 37746

If you qualify, the losses and expenses would ultimately wind up on Schedule C. The expenses wouldn't be subject to the 2% limitation as on Schedule A and also losses wouldn't be subject to the 3,000 limitation. Appears you would've had to made the mark to market election in the preceding year to claim the losses or would have to make it now for next year. I'm not an expert but here is an article which also references another which covers the subject. smartmoney.com Given the deadline for filing your return is Monday, you may want to file for an extension and consult a professional tax preparer as it is a complicated area. You automatically get a 60 day extension as long as you pay any money due with the extension. Good Luck.

To: djj who wrote (16237)	4/15/2001 1:08:58 AM
From: Bid Buster	Respond to of 37746

Tax form 3115 "application for change in accounting method" fill out the form and send it with this years taxes...you won't be able to take the write off this year, but you'll be able to next year. "a change in your method of accounting requires the consent of the commissioner and can not be revoked without the consent of the secretary" the IRS doesn't require a set number of trades to meet the requirement... but has stated.... "A business is generally an activity carried on for a livelihood or in good faith to make a profit. Rather than defined in the tax code, exactly what activities are considered business activities has long been the subject of court cases. The facts and circumstances of each case determine whether or not an activity is a trade or business. Basically, if your day trading activity goal is to profit from short-term swings in the market rather than from long-term capital appreciation of investments, and is expected to be your primary income for meeting your personal living expenses, i.e. you do not have another regular job, your trading activity might be a business."