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. AM I RIGHT WITH THIS?
I think you can carry back the loss against ordinary income from previous years but you shoud check this