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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (129392)	5/27/1999 3:20:00 PM
From: David Harker	Read Replies (1) \| Respond to of 176387

>But I am very interested in your comment that I dont have to >be concerned with wash sales...is that true, just because I'm >an active trader?Fidelity considers me an active trader...does >the IRS have some standard? IRS lets you "elect trader status" and you end up taxed on your net gain/loss for the year, no wash sale rules, etc. This is VERY HARD to get ("Trader status") - you must meet many criteria. There was a recent free series of articles on this at thestreet.com, and probably plenty of other sources of info on the Web. From what I've read, (from memory) you need to gain your primary income from stock trading - no other job/earned income. That's a big hurdle for most of us, and it does not end there - (the list of criteria). All, please correct me if wrong, this is from memory...

To: freeus who wrote (129392)	5/27/1999 3:21:00 PM
From: Mark Peterson CPA	Read Replies (1) \| Respond to of 176387

does the IRS have some standard? Yes, it's called the "You get to go to Park City, Utah, and we have to sit in the office and audit tax returns" standard (and we don't think that's fair, BTW)." So, just tell us how much money you've earned in the market, and send it on in...... And God Bless George Washington...

To: freeus who wrote (129392)	5/27/1999 3:30:00 PM
From: DellFan	Read Replies (1) \| Respond to of 176387

OT*Traders v investors It is a facts and circumstances test(i.e. a "smell" test). More info avaialable, if needed. Securities Investors and Traders Taxpayers who are mere investors may not deduct trade or business expenses or ordinary losses.189 However, they may be allowed deductions of expenses for the production of income.190 Unlike securities traders, securities investors are not engaged in a trade or business.191 189 See Code Secs. 162, 165. 190 See Code Sec. 212; see also Mallinckrodt v Nunam, 2 TC 1128 (1943), affd 146 F2d 1 (8th Cir 1945), cert denied 324 US 781. 191 Snyder v Commr, 295 US 134 (1935), 55 S Ct 737, 35-1 USTC ¶9344. A facts and circumstances test is applied to determine whether an individual taxpayer is merely an investor or whether his activities rise to the level of the trade or business of securities trading.192 The following factors are relevant to this determination: 192 Higgins v Commr, 312 US 212 (1941), 61 S Ct 475, 41-1 USTC ¶9233. l the taxpayer's investment intent; l the nature of the income to be derived from the securities; and l the frequency, extent and regularity of the taxpayer's securities transactions.193 193 Moller v US, 721 F2d 810 (Fed Cir 1983), 83-2 USTC ¶9698. Although traders and investors both hold securities in their own accounts, investors generally purchase securities for capital appreciation and income, regardless of short-term market developments, while traders tend to buy and sell securities with an aim to profit from the daily changes in the market.194 A trader's activities are directed toward short-term trading and an investor's are toward long-term holding of investments. A trader principally derives income from the sale of securities and an investor from dividends and interest paid on securities.195 The trader's profits are derived from the direct management of purchasing and selling.196 194 Purvis v Commr, 530 F2d 1332 (9th Cir 1976), 76-1 USTC ¶9270. 195 Moller v US, 721 F2d 810 (Fed Cir 1983), 83-2 USTC ¶9698. 196 Levin v US, 597 F2d 760 (Ct Cl 1979), 79-1 USTC ¶9331. A taxpayer was held to be engaged in a trade or business when he devoted nearly all of his working time to the purchase and sale of securities. He made direct judgments regarding the purchase and sale of securities based on his personal knowledge of issuing corporations. In one year, he conducted 332 transactions involving the transfer of 112,400 shares worth $3,452,125. The dollar volume was over one-third the value of his entire holdings, and 70 percent of his net worth. He routinely visited the corporations in which he invested and talked to company officers and attended lectures on securities topics.197 197 Id. In the following circumstances, taxpayers were not engaged in a trade or business: l Taxpayers, husband and wife, devoted full time to the management of their portfolios. They made over 100 securities transactions in each tax year examined, but nearly one half of the transactions involved stock splits, withdrawals of trust accounts and other nonspeculative activity. Interest and dividend income was over 98 percent of their gross income.198 198 Moller v US, 721 F2d 810 (Fed Cir 1983), 83-2 USTC ¶9698. l A taxpayer's entire income was derived from dividends and interest.199 199 Klawa v Commr, TC Memo 1968-85, 27 TCM 403. l A taxpayer, a retired accountant, acquired oil and mineral rights and engaged in occasional transactions in connection with those interests.200 200 Rothbart v Commr, 26 TC 680 (1956). l A taxpayer was a partner in an investment club partnership.201 201 Rev. Rul. 75-523, 1975-2 CB 257.

To: freeus who wrote (129392)	5/27/1999 6:49:00 PM
From: kemble s. matter	Read Replies (1) \| Respond to of 176387

freeus, Hi!!!! RE: Arthur: I know people are moving out of DELL, they all PM me. I have to think about Greg's post that selling, even now at a low price, may be the best thing to do: the money either could be better used elsewhere, or just sit until even more downside offers "good buying opportunities". I have to think about that, perhaps its the thing to do. Perhaps you should be reminded what Kevin Rollins said on the Bloomberg News Report the day after earnings??? Best, Kemble