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You have to file an election with the IRS electing traders status. If you
don't file the election you don't have it.
There are specific timing requirements as to when the request must be filed
for the current income tax year. I don't remember exactly what they are off
the top of my head but I do remember the request must be filed early in the
year for which traders status is elected and can not be filed retroactively
after the end of the tax year.
Roger
----- Original Message -----
From: "M. Simms" <prosys@xxxxxxxxxxxxxxxx>
To: "Roger L. Shepherd" <mailrs@xxxxxxxxxx>
Sent: Monday, July 23, 2001 1:06 PM
Subject: RE: Tax status
> But.....how can you NOT declare that status when in fact you are a
> trader....
> in other words, what are the qualifications that force you into TRADER
> STATUS ?
>
> Also, is there any effect from incorporating your trading as a separate
> entity ?
>
>
> > -----Original Message-----
> > From: Roger L. Shepherd [mailto:mailrs@xxxxxxxxxx]
> > Sent: Monday, July 23, 2001 10:58 AM
> > To: Omega-list
> > Subject: Tax status
> >
> >
> > 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.
> >
> >
>
>
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