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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (44)	2/16/1998 5:50:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 1383

Susan, Absolutely! (to a point) Actually the Hobby Loss rule "allows" a loss in only TWO out of five years!! . If a so-caller TRADER actually lost money (Sch C + Sch D) for more than two out of five years the IRS COULD CONSIDER the Hobby Loss rule, and in effect take the position that you ARE NOT in a bona-fide Trade or Business. i.e. you are merely AN INVESTOR. . Now I know you specified "Sch C losses", and obviously most TRADERS have a Sch C loss EVERY YEAR. Therefore I take the position that one must net the Sch C loss against the Trader Portion of the Schedule D to determine if there is a "hobby loss" issue. . Colin