|
PureBytes Links
Trading Reference Links
|
Although you will probably be hit with a big tax liability in the year you
had the spike, if the following year you have a big loss, you can refile the
prior year's return and carry back the current year loss to offset the big
hit in the prior year. In effect, commodity tax laws allow you to do some
averaging. However, you still have to come up with the cash to pay the big
tax bill in the first year even though you will get it back when you refile
the next year to carry back losses to winning years.
I had this very situation in 1994, so that's how I learned about it. I don't
think it's changed. Look on form 6781 and there is a box D when you elect to
carry back a current year loss. Then on line 6 you enter the amount to carry
back.
Scott Hoffman
Issaquah, WA
-----Original Message-----
From: Dan Dick <dandick@xxxxxxxxxxx>
To: omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
Date: Thursday, March 04, 1999 9:27 PM
Subject: Tax question - off topic but probably of interest to most
>Hi folks,
>
>I hope it is ok to ask this question on this forum. It isn't
>TradeStation related but since we're all investors, I have a question
>that may be of interest to others, too.
>
>Did you ever have a situation where you had a whopping gain right before
>the end of the year and a matching whopping loss immediately afterward?
>We had a spike of about $100k which is a lot for us. I'm wondering if
>I'm going to be stuck with the taxes.
>
>Thanks and sorry if this is the wrong forum. I hope this is of use to
>others.
>
>
|