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

To: DanZ who wrote (195)	3/1/1998 9:06:00 PM
From: Colin Cody	Respond to of 1383

Dan, You need to have trading activities that rise to a level which constitutes a TRADE or BUSINESS. This is answered by reviewing the facts and circumstances. . For a TRADER one should use this definition" to be engaged in a trade or business, the taxpayer must be involved in the activity with continuity and regularity and that the taxpayer's primary purpose for engaging in the activity must be for income or profit" IMO there is no need to actually SPEND that profit. You may leave the profit in the trader account leaving you to live off other savings, or a spouse's income. The DANGER in having OTHER income besides the TRADER INCOME is that you may be deemed to not meet the above definition. . Cases to review to help your decision: Liang , Yesger, Higgins, Groetzinger.