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

To: Pierre Borczuk who wrote (516)	10/13/1998 11:02:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 1383

Pierre, Trader Status is "designated" by your facts & circumstances. If you operate as a Day Trader within the parameters set out by the courts to be considered a "trade or business", then... you are! . Once you are in fact operating as a trade or business in the occupation of a Day Trader, then you report the results of your operations on your form 1040 as such, RATHER than reporting as an "Investor" would do. . Most traders use Schedule C rather than Schedule A and form 4952 (which is what an investor uses). Most traders use Schedule D exactly the same as investors do. . There are many benefits, tricks, and traps to be alert to when filing as a Trader. Make sure your tax advisor is familiar with Trader Status. Don't be his "guinea pig" (g) . BTW, If you are on extension for 1997 until October 15, 1998, this may be an important time to make a special "sec 475 election" on your return. Only two days remaining! . Colin