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Does Tessler's book reflect the newly liberalised definition of trader?
Or is it based on the old tax code, where trading was not practically
available to individuals?
DanG
cb wrote:
>
> 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 or outdated, and in any case isn't at all from a tax expert!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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