As I said earlier, he must file since he traded and will otherwise be taxed for a ZERO basis on his sales! He is not going to file MTM for 2005, the deadline was April 2005 for TY 2005. He can file on a Schedule C as an individual without flares going up!
Here is a brief excerpt from the IRS web site. Amounts are gross income, not adjusted gross. If you get a 1099 from your broker showing $100,000 in net sales and your cost was $95,000 then your net income from capital gains, long or short term, was $5,000. Was your gross income $100,00? I'd assume you have to file. Anyway, here is the extract: There are some instances when you may not be required to file a federal income tax return. But keep this in mind â more than 70 percent of those who file are due a refund, so it may be to your advantage to file even if you are not required to. Single â $7,950 Head of Household â $10,250 Married Filing Jointly â $15,900 Married Filing Separately â $3,100 Qualifying Widower (with dependent child) â $12,800 Generally, a person who is self-employed must file a tax return if his or her net earnings from self-employment for the year exceed $400. Jack