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

To: mod who wrote (240)	3/16/1998 10:24:00 PM
From: Colin Cody	Respond to of 1383

Dennis, There's nothing like that on those pages in the latest book. Normally a Trader buys and sell CAPITAL ASSETS (not inventory), and per IRC Sec 1402(a)(3)(A) this is specifically excluded from self-employment earnings - HENCE, no Keogh deduction and no SECA tax. Anyone who says differently is WRONG. Ask to see their CITATION or PROOF. You wont get a satisfactory answer. There ARE people who have tried, and there ARE court cases that touch the issue, Judith Connelly TC Memo (who actually filed with the profits on Sch C) and Miller v. Commissioner where the taxpayer actually paid money into an IRA based on his "earnings" from Trading stocks. Buy IMO, neither of these two convincingly show that the profits from capital assets (or the gross receipts for that matter) belong on Sch C. . Colin