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

To: Street Walker who wrote (45)	2/16/1998 6:31:00 PM
From: Colin Cody	Respond to of 1383

S.W., the other little "bit needed" is to make sue you have dotted your "i's and crossed your "T"s. . As you see with the discussion with Bob today, there is NO DEFINITION in the IRS Code as to what a Trader is (or isn't for that matter). . Therefore we MUST look to the COURTS for such a definition. Laing v. Comr Yeager v. Comr Groetzinger v. Comr AND as I was just looking in my file for those names and interesting one that I should have posted last week on another BB thread here about WASH SALES and the TRADER is the case of Ropfogel v. U.S. . In this case, which is on point here with you, the jury considered NINE factors to determine TRADER STATUS. One was that Ropfogel had "12,000 stock trading transactions during the two years in question". BUT the SHEER VOLUME of TRANSACTIONS WAS NOT DETERMINITIVE!!! . In this case Ropfogel actually LOST his request for a summary judgement for his TRADER STATUS. . But don't let me deter you. From what you've posted so far, you look like a Classic Text-Book Trader. See your local CPA and inquire if they are familiar with TRADER STATUS. It may take some good LOOKING to locate someone in your area. Ask some specific questions, get an IDEA if they REALLY know what they're talking about, or if they are blowing smoke and figure to themselves that they'll treat it just like any other taxpayer 1040 situation. (MOST CPSa and other Professionals have not a CLUE what a TRADER STATUS taxpayer is - remember there are only 2,000 of them in the whole USA) . Trader Status is FULL OF PITFALLS. Be careful, but do not run away scared. I think you may be OK with it. . Your weakest point, that I inferred from your post, is that you work out of a HOME OFFICE. Not the end of the world, just a weakness in your case. . Good Luck! . Colin