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Re[2]: Maybe off-topic: donwloading transactions



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Hello Gary,

I do file trader status.  trade only futures. trade only short term
so don't have overnight (esp night of 12/31/xxxx) positions. I also
file with finger crossed.

-- 
Best regards,
 Jim Johnson                           mailto:jejohn@xxxxxxxxxxxxxxxx

Tuesday, March 19, 2002, 12:19:24 PM, you wrote:

>> when filing taxes, I usually just compute the difference bwtween
>> jan 1 and Dec 31, adjusting for any deposits, interest or cash
>> withdrawals. that amount is then subject to the 60/40% long/short
>> gains tax.

GF> Assuming I understand the tax laws right (a big assumption!),

GF> * 60/40 applies only to futures trading.

GF> * Mark-to-market accounting (just reporting difference between 1/1 
GF> and 12/31) also applies to futures trading.

GF> * You can use MTM accounting for equities (and probably options) only 
GF> if you have filed for "Trader" status -- section 458 or whatever it 
GF> is.

GF> I'm no authority, just raising a possible flag.  Check with your CPA 
GF> before you presume to understand the mysteries of the IRS.

GF> Gary