Tax-defered account versus taxable account question

Discussion in 'Taxes and Accounting' started by nravo, May 7, 2007.

  1. nravo


    Let's say I have $100K in two accounts; one an IRA, the other a regular trading account. Let's say I write OTM futures calls in the IRA and offset them with long calls in the non-IRA. Ok, I have a zero gain. But have I not essentially moved money from the non-IRA to the IRA. (I won't get into the matter of whether the losses in the non-IRA are tax-deductible and making this strategy even more worthwhile.) If I bought $100,000 worth of OTM calls and sold them in the IRA. I end up with $200,000 in an IRA and can now trade tax-deferred for the next 30 years or so, right? My risks are the trade going against me and I wind up with $200,000 in a taxable account. But, aside from that risk, and perhaps doing this incrementally, is there any reason not to do this, legal, return-wise. I know the argument is that if you know you will make money in the IRA why not just do that in both accounts. But if one just wanted to consolidate accounts and reduce a tax bill, and was willing to take the market risk and maybe lose out on market gains for however long this strategy takes place, well ...?
  2. Surdo


  3. nravo


    I amended it and posted it in a different catagory; is that considered bad manners on here? Everone seemed focused on the tax-implications in terns of taking a deduction on the losing side of the trade -- not on the simple transfer or assets. Apologies if this was not sporting.
  4. ta1


  5. Surdo



    Please stop stalking me.