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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (97506)	4/23/2001 11:39:47 PM
From: Box-By-The-Riviera™	Respond to of 436258

well....now i understand. why didn't you say that the first time? <g> i will send him a pm showing him how to use the ignore feature so the poor man won't be burdened when he comes here for his vacation.

To: Ilaine who wrote (97506)	4/24/2001 8:20:31 AM
From: Ilaine	Read Replies (1) \| Respond to of 436258

Someone was talking about tax filing status as a professional trader last week. From Briefing.com: >>The Ever Obscure Loophole There seems to be no shortage of ideas on how to get out of paying taxes. A common one that we have heard is the idea that one establish oneself as a "professional trader." Not being tax experts, we can offer no advice on the advisability of this approach or the pros and cons of taking it. But we do know that some of your fellow Briefing.com readers file consider themselves "professional traders," and they treat their capital gains/losses as "business revenue" instead of income. Here's how one reader who asked for anonymity described it: Having elected to start a Schedule C business as a "trader," during year 2000 we treated capital gains and losses as income and losses from a business. You check on line F, Accounting Method, "Other" and write "Mark-to-market." At the end of the year, you "mark all of your positions" to market value (as if you had sold them). All your realized and unrealized capital losses turn into "operating losses" for the business. This is all legal, although subject to interpretation, and you never know if you are safe or not using this mechanism. You use Form 4797 (sale of non-depreciable business property) to show all of your stock trades -- not schedule D. You then use form 1045 for Net Operating Loss (Application for tentative refund). These losses can then be carried back two years (for the IRS... state laws may vary... for example, California only allows carry forwards). Part of the NOL form will compute how much money you should get back. Using this mechanism, the legitimate trader (not just the casual investor), should legally, be able to apply all of his or her stock losses to offset any taxable gains (income or capital) from years 1998, 1999, and 2000... " Again, Briefing.com cannot offer any advice regarding this approach, other than "Consult a tax professional." << www2.briefing.com I don't know what it takes to qualify as a professional trader. From the IRS, how to calculate a net operating loss carry back or carry forward - note, this does not apply to capital gains, unfortunately, just to losses in your trade or business, unimbursed business expenses as an employee, casualty and theft losses, moving expenses, and losses incurred from rental property. ftp.fedworld.gov