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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: bruce bell who wrote (1588)	12/11/1998 12:27:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

Bruce, Your web site states that as an "trader" you can only write off only $3000 per year. Should that be as a investor? No, Kaye is correct. Investor / Trader limited to $3,000 a year. I think you should be able to write off all marked to market plus any other traders losses along with your investor's losses. There is a special permanent Sec 475 election that traders may OPTIONALLY make which (among other things) changes the CAPITAL LOSS limitation from $3,000 to an ORDINARY LOSS with its own set of limitations, which can far exceed $3,000 in a year. You also site that you report all "traders' profits" as capital gains. This is reported as earning or losses as small business do. No, Again, Kaye is correct. Taxpayers should strongly consider getting an experience tax advisor if they are planning on filing as a TRADER status taxpayer. Are your these statement correct with the 1998 IRs rules? There have been no changes effecting trader status or elections in the past couple months that I am aware of. We should expect the Sec 475 election to have new regulations issued sometime in the next year, IMO. Colin