Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Monty Lenard who wrote (302)	5/23/1998 11:35:00 AM
From: Colin Cody	Read Replies (1) \| Respond to of 1383

Monty, Glad to see you here! My own "trading" activity is about as informal as your's sounds. (g) Colin, I don't know what your do for a living I'm 1st a practicing CPA in Connecticut. and 2nd an Investor, someday maybe, to be a Trader. I do feel that there is enough case law and regs available to make a case for someone that is truly a day trader even though they have another job. I don't know about that. Have you read Mayer v Comr; Moller v US; King v Comr; Paoli v Comr and Walker v Comr? "Sporadic trading will NOT constitute a trade or business" IMO the courts look for a taxpayer to be PRIMARILY ENGAGED in the trade or business of a Day Trader. As an example - I would not feel comfortable taking a Trader Position for a guy who "is really a day trader" but only does a trade now and then (maybe a buy in the morning, and a liquidation in the afternoon) because of the lack of time while he works his "real job". I do acknowledge that this is not a REQUIREMENT spelled out in the IRS Code. GOOD LOCAL CPA. The person they hire may not be familiar with the requirements of "Trader Status" off hand, but they can read and interpret the law and become familiar. I respectfully disagree. One needs to find a CPA, EA or Tax Attorney ALREADY THOROUGHLY FAMILIAR with Trader Status. Trader Status goes against "everything" logical that a typical CPA has been trained in. Just watch CNBC sometime when they have call-in questions to volunteer "Big 6" CPAs about this area. They give "logical answers" that are 100% WRONG!! You should hear me SCREAM at the T.V. set when this happens (g) There are many tricks and traps that goes along with being a TRADER and you don't want to be the one paying $200 and hour to train your advisor (g) Sure, you might find a CPA who has the TIME, and INTEREST to LEARN about Trader Status, but I bet those guys are far and few between. Can you imagine the explanation given at the next Partners' Meeting during a review of all the non-productive time? (g) If every CPA or Practitioner had to know about EVERY situation before a client walked in, they all would be out of business. I can assure everyone on this thread that they can find someone close by that is qualified to guide them and there is no need to handle it long distance! Local representation is of course what you want as a first choice, but you must LOOK LONG AND HARD to find the right firm. Keep in mind there are ONLY between 2,000 and 3,000 taxpayers in the Country who file as a Day Trader. This is a very, very SMALL NICHE MARKET. You gotta look, ask friends for recommendations, and give your perspective CPA a "quiz" as I've posted here on S.I. in the past few months. Any CPA who flunks the quiz, MUST be avoided, IMO. BTW I have similar "quizzes" for Lawyers too. Fair's fair ya know (g) Colin