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

To: Colin Cody who wrote (386)6/28/1998 2:56:00 PM
From: topwright  Read Replies (1) | Respond to of 1383
 
Colin, I continually see your mention of "Special Considerations" referencing IRC Sec 475.

Am I correct that this is the exception that you are referencing in this passage:

TAKING LOSSES ...I was looking at online investor where an
article stated that one should try and avoid being classified as a
"professional trader" because otherwise you would only be able
to deduct up to $3000 worth of [NET] losing trades per year
while having to pay taxes on all [NET] gains. IS THIS TRUE
!!!!!!!!!!!!!
YES THIS IS GENERALLY TRUE (but there is a new exception
available since late 1997)

What exactly is this special exception/provision and what are the ramifications if exercised?

RB



To: Colin Cody who wrote (386)6/29/1998 9:53:00 AM
From: GT  Respond to of 1383
 
To Colin and WallStreetBum - Thankyou thankyou thankyou VERY much for sharing your expertise. When I have time I'm going to read every message here and am sure will be well informed by the end. Gorcon.



To: Colin Cody who wrote (386)6/29/1998 3:21:00 PM
From: WallStBum  Respond to of 1383
 
Thanks Colin, I was unaware of this. Like you said though, it affects such a small % of investors, and certainly none of my clients.

dax


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