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

To: robbie who wrote (722)	2/14/1999 10:39:00 PM
From: mod	Read Replies (2) \| Respond to of 1383

I'll try again too. I understand what you are saying. But Traders are different. Do you understand Trader status? Traders can do things ordinary taxpayers cannot, like deduct all investment expenses above the line, including margin interest (and which is not subject to the investment interest limitation). I disagree that Traders need self-employment income or wages to use the Sec. 179 deduction. Traders report the income from their "trade or business" on Schedule D, therefore you have to include that income for purposes of the Sec. 179 deduction. You are taking too narrow a view of the definition and how it would apply to Traders, who are in a unique tax status, we are not mere mortal Investors. All of these words (Traders, Investors, Dealers) have special meaning for the tax laws and regs, I get the impression you are not familiar with the differences for tax purposes. I have spent quite a lot of money on tax advice, in years past when Trader status was likely used by merely a few hundred people. I was one of them. Now, every investor with a full-time job and an internet brokerage account is claiming Trader status, thereby inviting the wrath of the IRS down upon us with their proposed regs. Oh well, it was too good to last...