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

To: Daniel Elkayam who wrote (205)	3/6/1998 12:42:00 AM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 1383

NO............unless you think you can elect trader status........... and mark to market.... ( in addition).... Colin correct me if I am in error............... (now I'm starting to get confused) cap gain losses are limited to the 3000........in that year....the rest you will apply to future years until it's all used up.... If you have trader status...and mark to market...then the cap gain/loss becomes ordinary income.... and all the loss can be deducted on sched C........... but mark to market is forever..... and you will also have self employment taxes,,,,,,if any..... which i think you will pay a minium medicare and soc sec of some kind in spite of the losses..... but Colin can better answer it........ I'm not really keeping track anymore.... re: who's on first, 2nd and third with trader status............. also...........how do you define losses..... do you mean after 900 trades you had a loss........ or only some of them were losses???? the 3000 rule applies to the bottom line........for all your trades for that year totaled up..... not individual trades. in more other words....did you make a profit after you add up your 900 trades...or a loss.....if it's a loss...then you apply the 3000 rule. Joel

To: Daniel Elkayam who wrote (205)	3/6/1998 10:10:00 AM
From: Colin Cody	Read Replies (1) \| Respond to of 1383

I agree with much of what Joel had to say... except... . Not all the losses for 1997 would be deductible. . Only trades after June 8th apply to the market-to-market election... and only 25% of the adjustment (as yet to be thoroughly defined by Congress or the IRS) is reflected in the 1997 form 1040. . There was a newspaper story in December in Barrons that has some people talking, but that story, while not technically incorrect, left out enough data to mislead many people into thinking that there was something to be had that is a lot better than reality. . I also do not believe that self-employment taxes are applicable at the present time. . Colin