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

To: Colin Cody who wrote (514)	10/12/1998 4:30:00 PM
From: mod	Respond to of 1383

Colin, I agree that trading does not generate self-employment income, at least for purposes of Schedule SE. However, the MSA instructions are somewhat vague and general, and I thought it might be interpreted more broadly. Their definition of compensation includes: "Compensation also includes net earnings from self-employment, but only for a trade or business in which your personal services are a material income-producing factor. Generally, this amount is shown on the Schedule SE (Form 1040) you complete for your business or farm." Notice the "generally" used. That implies there are some cases, at least for MSA purposes, where you could have "net earnings from self-employment" which are not on Schedule SE. Maybe trader status could be one of them? I do have positive "net earnings", if you add Schedule C and D together. Or am I parsing the IRS language too much? :-) I will check with my CPA on this, but I doubt it's a question he's been asked before. Dennis