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

To: hooter who wrote (426)	1/9/1998 12:09:00 AM
From: Brendan W	Respond to of 5810

No. Trader status gives you an election to mark to market and the ability to deduct your expenses as business expenses (sched. C). You don't have to claim that you're running a business ... you can always claim it's for investment only (and file the expenses as investment expenses on Schedule A). You have to justify it's a business because business expenses are subject to fewer limitations than investment expenses.

To: hooter who wrote (426)	1/9/1998 1:22:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

Your question is actually is TRADER status an ELECTION? Now I may say "elect to be a trader" sometimes, but technically that is not correct. There is no ELECTION per se to be or not to be a TRADER. . TRADER status is determind by FACTS. You either is, or you ain't. . BUT since a trader status results in LOWERING your income, generally, there is little likelyhood that the IRS would #1 be aware you were a trader if you didn't tell them, and #2 even if they KNEW they probably wouldn't care that you over-stated your income. SO they would let your return stand as filed in that regard, IMO. . Colin