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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (281)	12/18/1997 11:04:00 AM
From: Box-By-The-Riviera™	Respond to of 5810

Be careful about electing trader status.... this is not easy to justify should you get an audit down the road..... essentially you need a high volume of trades, basically all of them short term.... that means 1-7 days holding time, throughout the year on a regular basis etc etc etc..... any long term positions, periods of time where no trading occurs, and a less than huge volume of trading will make your position very challenged. But if you do qualify, there's an added bonus of the mark to market election...though in this you would need to calculate the self employment taxes you would have to pay..... and some other tricky issues....though this might be offset if you had a number of wash sales....since the wash sale rule is elminated under the mark to market election. Joel