Trader Status pitfalls for taxes.

Discussion in 'Taxes and Accounting' started by midlifeguy, Apr 21, 2008.

  1. If you have a year where you lose alot, doesn't this mess up your ability to carry forward? Say you lost
    $100,000 in a bad year, you can use $3,000 the normal way and carryover $97,000. Say you make $50,000 the next year, you would no pay tax, since you had the carryover....if you used Trader Status, you would use the $100,000 all in one year and now owe on the $50,000 the next year.

  2. I think you can carry back the loss against ordinary income from previous years but you shoud check this