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I am not accountant. But it is my understanding that "trader status" is
just what is says: it is for traders. Those people who trade several times
a year could deduct all their expenses as other businesses.
A trader may invest some of his money. (Buy stocks and keep it for years).
On his investments he would be treated as everybody else.
Ignorant Alex.
At 06:13 AM 9/15/99 -0700, Phil Lane wrote:
>Trader status is great if you have short-term losses in excess of $3000 and
>you'd like to use them against other income.
>
>However, just in case somebody actually MAKES MONEY trading, trader status
>will cause all your trading income to be taxed at the VERY HIGH short-term
>rate - you lose the 60/40 split. And also once having elected trader status
>you can't go back again without a major hassle!
>
>This is my understanding - pls correct me if I'm wrong..
>
>phil
>
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