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Tom Domingues wrote:
>
> See a discussion of the trader tax status issue in today's (Sunday 14 Feb.)
> Washington Post, "Thorny Tax Issue: Who is a 'Trader ?".
>
> It's at http://washingtonpost.com/wp-srv/business/feed/biztop918999483517.htm
>
> Tom Domingues "Make new mistakes."--Esther Dyson
> tdelta@xxxxxxxxx
There are some differences in that article vs. what's in Tessler's
book. For ex., as I recall, Tessler has 3 categories: investor, trader,
and market-maker?. Tessler has traders put profit/losses as capital
gains/l but says you can put expenses as business expenses not investing
expenses. So losses would be limited to $3000 per yr. (w/excess rolled
over), but expenses could be deducted straight from any income.
The article seems to say traders' p/l are regular income not capital.
Tessler says that only for market makers. He also says mm's are the
only ones who would have to pay self-employment tax. I can't remember
why they would and a trader would not.
This is my recollection from about 15 months ago, so it could be faulty
or outdated, and in any case isn't at all from a tax expert!
Conrad Bowers
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