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

To: Len who wrote (118)	2/20/1998 3:27:00 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 1383

depends on which election you are talking about... Trader STatus? or Mark to Market? Trader Status alone won't move your gains/losses to sched C. That's what Colin means. Did you actually trade hundreds of times during 1997 and in the end come out with a net loss exceeding $3,000 ????? If that's the case.....IMHO.... you should not be in the stock market. Let a fund manager handle your money. Joel

To: Len who wrote (118)	2/21/1998 11:24:00 AM
From: Colin Cody	Read Replies (1) \| Respond to of 1383

Len, No, nothing here in this sub-thread here has really come to odds with what I said, Perhaps you are not picking up on it??? (g) . The actual reporting MECHANICS have not been directed by Treasury or by the Forms drafters as of this date. . We do not even have the reporting THEORY agreed to yet. and that NEEDS to be accomplished before the 1040 returns can be prepared. . The short of it is there may be FEW 475(f) elections. There are a LOT of pitfalls as it is written, and what is written is also VAGUE and simply not precise enough to accurately prepare a tax return. If you elect 475(f) for 1997 (the only year you "legally CAN" do so, BTW) you would have to rely on your Tax Pro to guide you through a "best efforts" decision to comply with the law. . Other than someone with HUGE HUGE losses or HUGE HUGE gains I don't know at this point if 475(f) is worth it for the average guy. UNLESS you were "planning" on having huge losses in excess of $3,000 in future years.... . The problems is:- Sure. it (partially) deducts LOSSES beyond $3,000. But if you're looking at LOSSES, perhaps you are not really in a bona fide Trade or Business. Perhaps you are just doing "a hobby" or "playing around" as an Investor... those are issues a Trader Status might be confronted with under audit examination... . Colin