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Folks, folks, folks...
We're talking about the IRS here. The people that answer those phones
have something like a 37 percent accuracy rate when answering
questions regarding the tax code. If you have doubts, consult a
professional. Don't take the advice of any of us...we're traders. Get
advice from someone you trust.
Tim Morge
Langben wrote:
>
> Check with the Source
> Call the IRS 1 800 829-1040
>
> ----------------------------------------------------------------------
>
> Subject: Re: Trader tax laws...what are they?
> Resent-Date: Thu, 19 Mar 1998 06:57:28 -0800
> Resent-From: omega-list@xxxxxxxxxx
> Date: Thu, 19 Mar 1998 09:56:14 EST
> From: BelAirCap <BelAirCap@xxxxxxx>
> To: sptradr@xxxxxxxxx
> CC: omega-list@xxxxxxxxxx
>
> In a message dated 98-03-18 22:48:10 EST, you write:
>
> << 2. A trader is also defined as primarily engaging in numerous short term
> trades throughout the year for their own account and in their own name (as
> opposed to investors who trade primarily long term positions). The key
> here is FREQUENCY of activity (numerous) and LENGTH of holding period
> (short term). >>
>
> Perhaps there is another key concerning the self-employment tax. I don't know
> of any professional trader who trades for a living who is not required to pay
> self-employment tax. This applies to those who trade on-the-floor as well as
> off-the-floor. Every tax professional I have ever consulted has told me the
> same.
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