Recent content by stocksonly

I found my answer. Regular quarterly CASH dividends under 10% of FMV as well as CASH dividends that are less than $12.50 - are generally ignored. STOCK dividends on the other hand result in the OCC making an adjustment to the terms of the underlying option...

When are dividends ignored as far as call option are concerned? I understand that the holder of a call option normally takes the hit on a dividend ex-date. EXAMPLE MA announced a stock dividend (not a stock split) and MA is issuing nine additional shares for every one share held. If I...

Some good thoughts. But to clarify some issues: >>MTM election can be made for equity AND/OR Section 1256. It is not a one-size fits all election unless you make it as such We are only talking Futures trading here. So in this case the M2M election for securities is not at issue...

If you seek trader status, then the expenses would be above the line rather than itemized deductions. Unless you do not have any expenses to speak of, and those expenses you do have are paid through the other business. If you have trader status and you elect Sec 475 M2M, then your losses...

No, not at all. I'll repeat: "Depending on the type of income that is being is reported on that K-1, then that income might be required to be netted against a same-type of carryover losses from a retail trading account." Additionally you should be aware that capital loss carryforwards are...

You will note that the K-1 from the prop firm has several lines, each one for a different type of income (or loss or expense). Depending on the type of income that is being is reported on that K-1, then that income might be required to be netted against a same-type of carryover losses from...

Great posts, but just as a head's up - K-1, line 11F does not necessarily go on Sch E. Many items go on line 11F, including security trader cpital gains that might go on Sch D and security trader dividends that might go on Sch B, for just two examples. oceanwave07, The 31 day trick...

The rule being discussed here. That is the rule for the requirement to file an income tax return with the IRS. There has been no discussion regarding taxable income.

Absolutely, you have understood the IRS rule correctly! (of course the taxpayer needs to add up all of his 1099-B amounts, along with all other 1099 income and all other includible non-1099 income, such as gross sales proceeds from stock options)

For a USA citizen / resident, it does not include capital gains or losses. Rather it includes gross sales proceeds. So if total sales for the year (added to all other includible revenue such as interest and dividend income) amounts to less that the amount needed for filing (less than $9,350...

What they mean is that (depending on the legal structure of your relationship with the prop shop) WORST CASE: Self-employment tax 15.3% Federal income tax 35% State income tax ?% total taxes, roughly 50% The above is the "subcontractor approach" that many prop shops use. They will...

Oh puleeze, Ted Tesser had several manusctrips and books published while green was still sucking hind teat.

Don't listen to the nah-sayers. $5,000 a month is more than enough to live off of. Anyone who can't feed a spouse and the kids on that kind of money needs to listen to Suzy Orman, or maybe not have so many kids. Two kids is enough for anyone. Anything beyond $5,000 or $6,000 a month should...

And as I said. Maybe a lunch where he picks up the tab. Maybe if there were a several referrals of that size, a few thousand shares of a Hot IPO or maybe being let in a Private Offering. That's my observations anyway (from the outside looking in).