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

To: peter michaelson who wrote (95)	2/19/1998 6:20:00 PM
From: Len	Read Replies (2) \| Respond to of 1383

If I can pull you two away from each other for a minute, I'd like to ask you both a question. Assuming you take the position of a "trader," how do you make the jump from showing the gains and losses on Schedule D, to either netting that total against your expenses on Schedule C, or somehow otherwise showing the net gain/loss on your 1040? The Schedule D , if followed correctly, will limit you if you have a net loss from transferring any more than $3000, (married, jointly) to the front of the 1040. Do you stop at a certain point, and attach a supporting statement, or some other way? Thanks for any help

To: peter michaelson who wrote (95)	2/19/1998 9:02:00 PM
From: Colin Cody	Respond to of 1383

Peter, Yes you have hit the nail on the head. And one could stop right there if they wanted to. . There IS more to it IN CERTAIN CASES. But for some people it is EXACTLY as you have stated. Probably the most important additional issue for many traders it that Sch A is "below the (AGI) line". . For others there is: Business interest vrs Investment interest Sec 179 vrs Depreciation Possible SECA tax reduction Possible NOL computation Some people try to get a keogh deduction (as alluded to here in other posts I believe). There was a wash-sale case that hinged on Trader Status There is the NEW IRC Sec 475(f) potential etc etc etc Colin