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

To: m-top who wrote (852)	5/8/1999 10:09:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 1383

John, As far as write-offs, there don't seem to be many options. The higher you're income, the more your deductions get phased out..... If you are able to come up with any innovative ways to reduce the tax hit I'd very much like to hear about them. If you are active and play the short-term market swings rather than go for dividends, and fundamental analysis then filing as trader status eliminates the phase out, and potentially much more! Colin traderstatus.com

To: m-top who wrote (852)	5/12/1999 3:35:00 PM
From: Kaye Thomas	Read Replies (2) \| Respond to of 1383

I can confirm that you get 60-40 treatment on "section 1256 contracts," which include index futures. But I don't know what math you use to come up with a maximum rate of 25%. If you're in the 39.6% bracket, unless I've messed up on my HP 12C, you would pay federal tax at a rate of 27.84% on 60-40 income, and still pay a state tax on top of that. It's a good deal, but not as good as you message suggests. Meanwhile, I suspect that's a harder market to trade successfully because a lot more brainpower (and computer power) has been devoted to analyzing these babies than any one stock, and there are fewer amateurs out there to feed the sharks. Kaye Thomas, author Fairmark Press Tax Guide for Investors fairmark.com