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Non-Tech : Traders-Unlimited tax losses, unrealized -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (4)	1/24/1998 3:16:00 PM
From: DD™	Read Replies (1) \| Respond to of 15

"capital losses are limited to 3Gs against ordinary income." Are you saying that trading losses in excess of $3000 cannot offset wage income? Wouldn't these simply be considered short-term capital losses that can be offset short-term capital gains (which is the same as ordinary income with respect to tax treatment). Apparently short-term capital gains cannot offset wages, is this correct? DD

To: ahhaha who wrote (4)	1/25/1998 11:26:00 PM
From: Robert A. Green, CPA	Read Replies (2) \| Respond to of 15

I strongly disagree with your "hobby" classification of a part-time trader's business activity. Most traders would take strong offense to anyone who said that their trading activity was a hobby. It is serious work with the intent to make money, and not to loose one's precious assets that were earned in one's full time job. Hobbies are horse racing, vineyards, gentlemen farmers, boat charters, and other similar personal enjoyment activities. In a hobby activity your comments about showing a profit 2 out of 7 years are appropriate. Yes, many of us Internet enthusiasts personally enjoy trading over the net, researching stocks, reading the news, chatting in newsgroups, and surfing in general. Most of us are also successful at our full-time jobs and we also personally enjoy them as well. That is why we are successful and have the money to trade and make more money with. Part-time business activities are completely acceptable under the tax code. One of the best part-time business activities for a full-time employed high-tech executive is active trading in computer stocks. The business model and plan are excellent. The computer executive has key knowledge and market experience. They are computer and Internet advanced and can easily operate as a trader at very low cost.