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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: Shoot1st who wrote (143)	5/22/1998 4:43:00 PM
From: Colin Cody	Respond to of 1729

Shoot1st you used the word...."ordinarily"...are there exceptions. When we're talking the IRS Code, there are most ALWAYS some exceptions, (g) but none that you would normally ever come across. My personal belief was that if I were a professional Poker player I would be subject to this tax.... And you would be correct too! I don't see a big diff between the two. But the COURTS see a difference! The main/basic difference is that a Trader makes money when he sells CAPITAL ASSETS. Antique traders who buy one asset at auction with hopes of selling it for more money at a later date would incur this tax...no? An Antique DEALER would be subject to SECA tax, I believe. I don't know what an "Antique Trader" is though... If you mean a casual sale once a year, then NO, it would not be subject. If I deducted overhead..tele costs..quote costs..etc....would I not technically be a business? Not necessarily. One has little or nothing to do with the other... I do not personally deduct any investment related expenses except when I "Margin" permanent life insurance contracts. That interest is then deductible. It is deductible if directly traced to bona-fide taxable securities .........thanks for your prior response purchases, and then only as limited on Schedule 4952, IF you want to give up L-T gains treatment, as you probably would, if your a Day Trader... Good Luck! Colin

To: Shoot1st who wrote (143)	5/22/1998 4:43:00 PM
From: foxtrot	Read Replies (1) \| Respond to of 1729

Tax Situation : If you are an individual investor,trader,you are not self employed. If you are in the business of managing other peoples accounts and they pay for your services and you have an income from it you do a sch c(unless you incorporate or become a partnership). Then you pay federal income tax and if profit greater than $400. u file 1040schse and pay the 15.3% self employment tax. For individual, and if u itemize,on sch A expenses line 20 subject to 2% agi limitation. The expenses are involved with whatever it takes to manage(or trade) your investments.

To: Shoot1st who wrote (143)	5/22/1998 4:44:00 PM
From: R Stevens	Read Replies (2) \| Respond to of 1729

Trading Resources: Reat Time Quotes, Nasdaq Level II quotes, etc: dbc.com (great 1 month free trial) quote.com mbtrading.com Nasdaq Level II quote tutorial: elitetrader.com One stop web sight for all the web sights on a stock: purebytes.com (enter in your ticker, if the response states "ticker not found", press the "continue anyway" button. SI Page Listing Many Sites: Message 4262593 Tax Information On SI: Subject 17266 Subject 5727 Also Mentioned: pcquote.com telescan.com SOES Trading Info On SI: techstocks.com Suggested Books List: "Japanese Candlestick Techniques" by Steve Nisson ~ mess#40 "Market Wizards" by Jack Schwager ~ mess#43 "Trading for a Living" by Doctor Alexander Elder ~ mess#104 "The TAO (pronounced dow) of Trading" by Robert Koppel ~ mess#106 "How I Made 2 Million in The Stock Market" by Nicolas Darvas ~ #144 Place To Buy Books: elder.com