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

To: Robert A. Green, CPA who wrote (255)	3/24/1998 8:37:00 PM
From: Colin Cody	Respond to of 1383

Robert, Thanks! . There were two parts to the statement I suppose. It was the first half I was looking for. I understood the 2nd part that was, as you say, a reasonable interpretation of 475(f) when making the election which in effect converts capital losses into ordinary losses. . Part 1 "2. Traders may report their year-end "unrealized" gains and losses on Schedule D. You would probably choose this option if you have unrealized losses. Those unrealized losses reduce your realized capital gains. Part 2 If your net capital loss exceeds the $3,000 limitation, then you may report the excess unrealized losses on Schedule C. We suggest you explain this treatment on your tax return in a memo." . Colin

To: Robert A. Green, CPA who wrote (255)	3/25/1998 12:48:00 PM
From: Colin Cody	Read Replies (2) \| Respond to of 1383

Robert, Actually when I read my reply, I realized the 2nd part needed a cite too. . Part 2 "If your net capital loss exceeds the $3,000 limitation, then you may report the excess unrealized losses on Schedule C. We suggest you explain this treatment on your tax return in a memo" . The question isn't whether the UNREALIZED LOSSES go on Sch C. I understand your interpretation (posted here yesterday) 100% in that regard. What I requested a cite for was putting only the "EXCESS unrealized losses on Schedule C". . Thanks! Colin