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

To: Robert A. Green, CPA who wrote (7)	1/27/1998 3:12:00 AM
From: ahhaha	Read Replies (1) \| Respond to of 15

I don't know how long you've been at your trade, but I'd guess not long. Twenty years ago I went through all this ranting and raving about the way it ought to be. But CPAs don't really want it that way because if the tax code were simplified or made rational, there would be less work for them. I will tell you what the IRS will do with 99% of the people who feel they deserve the trader status. First they will deny them that status. Then the person must persist in demanding it. Then, you'll get a thorough audit. Next, you will be in a probatorial process for several years(it used to be three)while the IRS determines whether substantially most or all of your income is generated from trading. If you have another job and you spend half the day at it, but make substantially less than at trading, you probably won't qualify. There is no hard and fast rules about qualification, or if there are, they are internal to the IRS regardless of what they state is official policy. As far as this business about the nirvana of the happy trader, don't kid yourself. There are extraordinarily few successful traders and eventually they will go broke. Most don't last 3 years and that's why the IRS had the three year criterion. To succeed at professional trading you have to be a market maker or other on-floor pro hedging your bets. It is like cranking the crank. You essentially are getting on the other side of the public. You manage risk by not taking it. These guys get the trader status. The worst part of your comments are these glorifications of the computer executive. That person hasn't a clue about trading or about computers. That's why they're executives. Hobby is exactly what you describe as "Internet enthusisasts". I don't know what firm you work for, but if I was your boss I'd muzzle you toot sweet.