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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (1347)	4/14/2001 8:48:15 PM
From: Debra Orlow	Respond to of 1383

You didn't move because of your trading, did you? I think I know what you're getting at, but this is where it gets vague. The tax statute states that self-employed individuals are able to take the deduction if the two tests are met (described below), but never mentions if it is available specifically if they work out of their home. I could presumably trade from anywhere. But, if I was a self-employed web-based tax preparer <g>, I could also presumably work from anywhere. The two specific tests to determine whether or not the deduction is allowed are the distance and the time test. The distance test states that your new principal workplace must be 50 miles farther from your old home than your old workplace. If I work out of my home in both places, and move 1700 miles, that test is passed. (I think.) A "workplace" is legally defined in the tax statutes as a "plant, office, shop, store, or other property which serves as the center of his (the self-employed individual) business activities". Since I do take the home office deduction, I would think that the term "office" is what fits here. The time test states that you must work full time for at least 39 weeks during the 12 months and a total of at least 78 weeks during the 24 months right after the move. (For self-employed individuals.) Anyone who knows how I trade and backtest knows that those requirements will be met with no problem. And I do have the trading activity to prove it. I just can't seem to find the exact wording that I need, so I'm looking for anyone's thoughts.....