Recent content by taxman

I searched but couldn't find the information I was looking for... First, is there a pre-packaged spark spread product offered? Second, if I were to go long natural gas and short electricity (this would be considered a spark spread right?) would I be correct in assuming these positions...

I'm Looking for a book and or video that has an in depth discussion on margin requirements for stocks and derivitives. I don't have a handle on how to calculate margin and would like gain a better understanding on the technical rules.

S-Corps are pass-through, so the proposed legislation will have no effect. For any other entity taxed as a corporation for U.S. Federal income tax purposes, a tracing and segregation concept will apply. If a corp finishes the year with taxable income and pays tax on that income then it is...

I disagree. IRC Section 1259 nails you in this situation. If the stock gets delisted and you have no motivation to cover you're not deferring the tax, but escaping it entirely. This is clearly a constructive sale of an appreciated financial position.

The Reed - Elsevier virtual merger was interesting.

I tend to agree. State taxes end up as a deduction on your federal return anyway, so the impact isn't as big as one might think.

If you've elected to use the mark-to-market accounting method, it's as if a fictional sale takes place on the last day of your tax year. Your gain or loss is the difference between the your basis and the fair market value of your security on that day.

I have accounts with 2 brokers...none available. Since it's not optionable either, is there anything other strategy I can use?

It is critical that a tax return meet a minimum level of ‘completeness.’ If not, then what you have submitted is not a tax return. Consequently, the IRS may go back as far as it wants and make assessments because if you never submitted a return (i.e., it’s not a return if it’s not...

These guys are way ahead of the pack in that they actually incorporate some planning tools into their software to help you trade in a more tax efficient manner. Yes, it spits out a Sch. D too. http://www.gainskeeper.com I still think the market has a long way to go in developing the...

True enough. I was simply making the observation that for "damage control" purposes using a disregarded entity makes sense. I'm quite clear on the fact that the technique has no retroactive effect. Moving on... We both agree that the lack of -9100 precedent in this area is troubling...

Ok, I see where you are going with this. 9100 relief IS available for taxpayers that missed making their mark-to-market election. It's just that to date, no trader has been able to put together a fact pattern that meets the requirements under 9100. I'm curious as to whether the taxpayers...