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

To: Colin Cody who wrote (228)	3/16/1998 8:19:00 AM
From: Susan Saline	Read Replies (2) \| Respond to of 1383

If you fit reasonably well within the above then you could very well be a TRADER for tax purposes! Suppose, a person takes this title, and decides to file as.... Profession: "stock trader" 1. trades = profits/losses = Capital gains/losses ... entered on Sched D 2. Expenses = costs ... entered on Sched C. Schedule C = loss, every year, as only expenses may be entered here. soooo... you may only claim a loss on schedule C for 2 out of 5 yrs. Otherwise your business is considered a hobby. Is this correct? so, in the long run, any other way for a "stock trader" to file? NO other income derived ... just trades sue

To: Colin Cody who wrote (228)	3/17/1998 5:42:00 PM
From: Allen Furlan	Respond to of 1383

Many savy people on this thread. Perhaps someone knows answer to this. If I sell out of the money covered calls on a ratio write,ie 2 or 3 options on each 100 shares long, the calls go into the money and I roll up to a higher out of the money strike, A) Are all of the options bought back at a loss considered a short term loss irregardless of holding period of options.(believe answer is yes.) B)Does the sale of original out of the money calls or of the rolled up out of the money calls effect the holding period of the stock? The CBOE still does not have revised tax booklet and IRS didn't understand my question. Any help would be appreciated.