Bob111
Registered: May 2002
Posts: 6400 |
03-28-12 03:32 AM
Quote from gkishot:
You need to get a trader status first.
and everything that comes with it 
http://www.irs.gov/taxtopics/tc429.html
* You must seek to profit from daily market movements in the prices of securities and not from dividends, interest, or capital appreciation.
* Your activity must be substantial, and
* You must carry on the activity with continuity and regularity.
The following facts and circumstances should be considered in determining if your activity is a securities trading business:
* Typical holding periods for securities bought and sold.
* The frequency and dollar amount of your trades during the year.
* The extent to which you pursue the activity to produce income for a livelihood, and
* The amount of time you devote to the activity.
---If you have made a valid election under section 475(f), the only way to stop using mark-to-market accounting for securities is to request and receive written permission from the Service to revoke the election. Non-filing of the Form 3115 mentioned above will not invalidate a timely and valid election. To request permission to revoke your election under section 475(f), you must file a second Form 3115 and pay a fee. ----
easy to get into,not so easy to get out. specially for individual.
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