welliott111
98 posts
msg #66958
- Ignore welliott111 |
9/4/2008 4:46:44 PM
http://online.wsj.com/article_print/SB122039907716592937.html
Anyone had this happen? Is anyone here considered a "Trader" as the IRS sees it or know a way around this situation? TIA
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MoneyFetcher
22 posts
msg #66977
- Ignore MoneyFetcher |
9/5/2008 11:55:30 AM
That's weird...
They specifically mention swing trades, but then go on to state that there were not enough day trades. A swing trade can last a week or so at times can't it?
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tortexal
9 posts
msg #66991
- Ignore tortexal |
9/5/2008 4:41:10 PM
I'm actually not too surprised by this.
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decipherlinda
133 posts
msg #67152
- Ignore decipherlinda |
9/10/2008 11:50:32 PM
There's a very good book on this "Tax Guide for Traders" by Robert Green costs $39 on Amazon.com.
Green discusses how to avoid this. As I recall he says that you should try not to hold a stock for more than 21 days, try to trade most every day although in-and-out on the same day is not necessary. He suggests you get some kind of log book and record the times you work on investing and what you did that day. Also suggests you take seminars, buy books (I rent from library) and other forms of education (self or othewise) to demonstrate a professional approach and treat it (and document it) as though you had a full time job investing.
After reading his book, I'm not surprised at the judges ruling in the case of this couple. Green's book is excellent and shows how to avoid the pitfalls.
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