Re: [TheOptionClub.com] Trader status

 

you are correct that MTM is not required and is a seperate election available to "traders". However, to benefit from the "no" $3000 capital loss limitation and the NOL carryback availability [both of which over the last 10 years or so would have been a major reason to elect trader status for lots of folks] the MTM election is what moves the losses/gains from sched D  to form 4797 and also supplements the NOL carrybacks available from sched C.

Thanks for clarifying this for the group though, my previous post was not accurate as it was written.

 

Ken

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From: Peter <pnolan_sd@yahoo.com>
To: OptionClub@yahoogroups.com
Sent: Wed, February 3, 2010 7:09:28 PM
Subject: [TheOptionClub.com] Trader status

 

Trader status does not require mark to market. Mart to market is an available option to accelerate losses on paper. If you have paper gains, you would not want to elect mark to market, but trader status is still available. The advantage of trader status is that you can deduct valid investing expernses against your investing gains. All of your courses, data feeds, software expenses would be deductable in the year they were incurred. Without trader status, you would be able to deduct these only after 2% of your adjusted wages were exceded.

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