Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Brendan W who wrote (53)	2/16/1998 9:37:00 PM
From: Bo Didley	Read Replies (2) \| Respond to of 1383

LIBERTY PURE TRUST solgroup.com solgroup.com What does the IRS have to say about such TRUSTS? How many people in the US have such trusts? Only costs $1,000 to set one up. Bo

To: Brendan W who wrote (53)	2/16/1998 10:21:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 1383

Brendan, no I have no specific cite for my conclusion. . It is a rationalization - thusly: . The IRS DOES IN FACT RECOGNISE "STOCK TRADER STATUS" there are several cite acknowledging this. I have posted a few earlier today. . Virtually BY DEFINITION, a Stock trader's Trade or Business will ALWAYS show just expenses on Schedule C, and will likely show little or NO INCOME on schedule C. This is because BY DESIGN, all the TRADER'S SECURITIES ACTIVITY goes on Schedule D, leaving basically ONLY THE EXPENSES on the Schedule C. . So "obviously" one must take the profits from the TRADERS PORTION of his Schedule D and net them against the EXPENSES on the Trader's Schedule C to see if he "made any money" at his trade or business. . Conversely, there are NO CITES that I am aware of where the IRS prevailed in saying a trader's Schedule C is "a hobby" BECAUSE it shows expenses in 3 out of 5 years. . Colin