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Thanks to everyone for their responses to my posting. I will try to answer
all questions on the board, however will keep identities anonomous. This way
all who are interested can see my response. I am posting the questionnaire
many people asked for. It will be easier than sending it out to everyone. If
anyone is interested in my opinion email it back completed, and I will try to
evaluate it for you. All replies will be kept in strict confidence. Either
way, it will give you a good idea of what they look for. Here is is - I hope
it comes through OK:
Ted Tesser, CPA
Waterside Financial Services, Inc.
Investment, Tax & Insurance Consultants
123 NW 13th Street, Suite 313,
Boca Raton, Fl 33432
Tel: (561) 392-9232
Toll Free: 1-800-556-9829
Fax: (561) 392-2621 Name:
Address:
City/State/Zip:
Telephone: E-mail
address:
Single Married # Children
For A Free Trader Status Evaluation,
Fill Out This Trader Questionnaire and
Send It In To The Above Address
(use additional sheets as necessary)
1. What do you trade/invest, and what is your average holding period?
2. How many transactions do you average per month?
3. When did you start to trade/invest? Do you consider yourself a trader?
4. Do you trade/invest full time? If you have another job, what is it?
5. How many hours per week do you devote to your analysis and your
trading/investing?
6. Do you have the expectation of Short or Long Term profits from a position?
7. Do you intend to receive dividends from your position?
8. Have you ever been audited? When? Give details and disposition of audit.
9. Have you ever filed a Schedule "C" listing yourself as a "Trader?"
10 Have you ever filed a Schedule "C" as another sole proprietor business?
11. Have you ever reported a Schedule "C" loss? What year(s)?
How much?
12. Do you have an office to trade from? In home or out?
13. Do you use a trading system? Describe it briefly.
14. Do you trade by Technical Analysis or by Fundamentals?
15. Is your objective to take advantage of short term price fluctuations and
derive profits from frequent trading?
16. Are you a member of any nationally recognized stock or commodity
exchange(s)? Name them.
17. What percent of your portfolio do you have invested in longer term
positions as opposed to trading? (Give specific amounts).
18. Do you have a set of books and journals?
19. How do you keep track of open positions, gains, losses and other trading
activity?
20. How do you keep track of expenses?
21. How many seminars on trading/investing have you attended in the past two
years? What was the cost to you for attending?
22. How much have you spent on equipment, data, book, trading systems and
other related products in the past year?
23. What is your year-to-date trading profit or loss for the current year?
24. What was your trading profit or loss last year?
25. What is the size of your trading account?
26. How much do you have invested in other liquid assets such as stocks,
bonds, etc.? (e.g., $250,000-long term stocks, $150,000 - Treasury Bonds and
a $100,000 CD)
27. What was your adjusted gross income last two years?
Line 31, 1996 tax return
Line 32, 1997 tax return (if known)
28. Taxable income last two years
Line 37, 1996 tax return
Line 38, 1997 tax return (if known)
PLEASE NOTE: We will provide each respondent with a free Trader Status
evaluation but:
It is extremely important to answer all questions completely and accurately.
It would be helpful, if possible, for us to have a copy of your last filed tax
return, regardless of whether or not you traded or when it was filed. The
designation "Trader Status" is highly subjective, and in order to prove it, we
must have all the information that is requested above. Thank you, and we look
forward to working with you.
Ted Tesser, CPA
RATING
Good Average
Poor
1. Number of trades
2. Frequency of trading
3. Vehicles invested in
4. Time put into trading
5. Holding period
6. Office
7. Business-like structure
8. Technical vs. Fundamental
9. Percentage of income
10. Other factors
OVERALL RATING (A - F)
Explanation of Ratings
(A) Very strong position; unlikely to be challenged by the IRS.
(B) Good position; may be challenged but strong chance of winning if audited.
(C) Average position; could be challenged and supported depending on variables
such as people involved.
(D) Below average position; risky to take position and may get kicked out in
audit.
(F) Not recommended. Highly aggressive position. You should file as an
investor.
For more detailed analysis or for a discussion of factors which can be
improved upon, call our office to set up a personal consultation at
reasonable rates. We can prepare your 1997 tax return, consult with your tax
advisor or amend any prior year within statute limitations (3 years from date
of filing with valid extension). We look forward to working with you.
Ted Tesser, CPA
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