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TBTesser@xxxxxxx wrote:
> Nonetheless each Trader is evaluated on a case-by-case basis and the Court
> takes into consideration factors such as:
> 1. Frequency of trades
> 2. Duration of trades (long or short term)
> 3. Quantity of trades, and several other equally important factors.
> The courts have basically stated that a Trader is "one who trades his own
> account on a frequent, regular and continuous basis, with a substantial number
> of short-term trades."...
Now that everyone and his brother is a trader (often trading on employer's computers
behind the employer's back) - do you think the courts will give additional weight to the
nature of the alleged trader's trading income as opposed to income from other sources?
I might add to your comments that I worked at the opposite end of the food chain. I did
appellate work in state and federal courts (i.e., I didn't see cases until they were well
advanced and business people had most likely spent more on attorney's fees than they
cared to). It is important to note that all IRS examiners are different - trial judges
are different - and appellate courts in different circuits may well reach differing
conclusions on very similar sets of facts. So - even though you've done a good job
explaining the ambiguities - it is difficult to overstate them.
> Furthermore, on December 17, 1997 the Joint Committee on Taxation
> issued its
> report (aka the Blue Book)...
So Patrick White was quoting from the Congressional history?
> With regard to the issue of an LLC, or whether or not to incorporate, that is
> a topic that is beyond the scope of this forum to discuss. Each person's
> circumstance will have to determine whether or not an entity other than as
> sole proprietor is appropriate for them. I do have a great deal of experience
> with this topic, and have recently favored using the Family Limited
> Partnership with an LLC as General Partner for trading vehicles in many cases.
> When used in conjunction with a separate Nevada entity this combination
> oftentimes affords the Trader a unique combination of tax relief, asset
> protection, privacy, and flexibility.
As a point of information - if you do work in Florida (someone said you did - don't know
if that information is correct) - and you are an accountant (not a Florida lawyer - and
not working with a Florida lawyer) - then advice like this constitutes the unauthorized
practice of law in Florida. Only a lawyer licensed to practice law in Florida can give
advice like this to clients in Florida. Since things like LLCs are creatures of state
law - the Florida Bar may have a good point saying that accountants from other states
shouldn't be rendering this type of legal advice to Florida residents. But - "I ain't
got no dog in this fight." Like I said - it's just a point of information for you and
potential clients. Robyn
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