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I don't understand your point. Gains and losses are reported on
Schedule D whether you elect trader status or not and are therefore
treated consistently regardless of status. With trader status,
trading costs (other than commissions) are reported on Schedule
C, which therefore always shows a business loss which is
deductible from your gross income without any floors.
IMO, trader status is a big advantage just because you get the
partial LT capital gains treatment on income but can apply 100%
(other than entertainment) of costs.
On 23 Jul 2001, at 9:58, Roger L. Shepherd wrote:
> I exclusively trade futures on a short term basis.
>
> Trading futures, you are marked to market at year end for tax purposes
> regardless of whether or not you elect "trader status".
>
> The biggest advantage of not making the trader status election is that
> 40% of my gains are treated as long-term capital gains.
>
JFB
NYC
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