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

To: Jack Chen who wrote (181)	2/27/1998 11:38:00 AM
From: Colin Cody	Read Replies (3) \| Respond to of 1383

Well, While it is NOT clear why you want to change capital to ordinary gains, I don't see how you are going to accomplish that with your method. You wanted to PAY AN EXPENSE. This would create a LOSS. You would have LESS gain/income (and somebody else would have earned income). . But the IRS, generally would LOVE for someone to have ordinary gains since generally the taxes are greater. . But you are trading in capital assets and that presents a problem. . If you are a bone-fide TRADER status there is that new 475(f) election available that we've discussed here in the past few weeks. . If you qualify, you could convert your capital gains from June 8 to Dec 31 to ordinary gains/income/profits. It is not 100% clear exactly what you would convert them TOO, but they would be ORDINARY. . Colin