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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: Robert A. Green, CPA who wrote (3354)	3/11/1998 8:56:00 PM
From: steve goldman	Read Replies (1) \| Respond to of 12617

Robert, Thanks for stopping. Since you are offering to help, perhaps you could answer the following questions: What factors will the IRS look at in determing whether or not an individual is an active trader? Is there a certain number of trader per month they might want? Certain committment? Could a trader hold a job elsewhere? From my standpoint, I am wondering what my classification would be: 1. I head the trading desk of a brokerage firm and work about 100 trades a day for clients etc, and as many know, I dont do a ton of day trading for my own account, but anywhere from 50 to 100 trades per month for myself. Somedays, like when we are down 220 points, it might be 20, some days one or two. I have home computers, subscriptions and other expenses I would like to write off. What do you think? As well, if I can mark securities to the market I can take some unrealized loss and minimize tax bite. I thank you for your response in advance? Regards, Steve@yamner.com

To: Robert A. Green, CPA who wrote (3354)	3/12/1998 4:45:00 PM
From: Colin Cody	Read Replies (2) \| Respond to of 12617

Robert & All, We discussed this last month on another thread... until I started posting THE HARD QUESTIONS and you went away for a few weeks. . It is CLEAR that the tax law regarding Day Traders DOES NOT say:- " you are entitled by the IRS to deduct your entire economic trading losses at year-end December 31, 1997, against all your other gross taxable income". . Not in General terms, that is. Sure there COULD be the case in a very, very unique situation, but about 99%+ of the STOCK TRADERS absolutely may NOT do what you have implied! . Before you scurried off last month you posted that my opinion above has to do with retaining "an aggressive CPA" to represent you. IMO, that's B*LLSPIT! While the law was poorly drafted at first, IT IS STILL CLEAR that a taxpayer MAY NOT deduct 100% of his losses under the new mark-to-market rules and NOT be potentially subject to severe IRS penalties for both taxpayer negligence and for preparer penalties as well. . I am not here to solicit S.I. member's business (although I do practice Tax Planning and Preparation in CT) so let me just start with a word to the wise for S.I. members -- to just read the law yourself, or tell your CPA to opine on the law (below). . Keep in mind, even if you convince your CPA to take 100% of your losses this year you PERSONALLY will be the one who the IRS goes to for any tax underpayment penalties! . See Title X-Revenues; Subtitle A-Financial Products; IRC Sec 475(f)(3)(d)(1) and IRC Sec 475(f)(3)(d)(4)(B)(ii) for CLEAR reasons to not just WALK, but RUN from anyone telling you you can deduct 100% of your trading losses (in excess of the normal $3,000 limit) for 1997. . Good Luck!! . Colin