Charles Schwab suggestion to Bush

Originally posted by Tech Analysis


True, there's no 3k loss limitation in MTM trader status, since it's not a capital loss but an ordinary income loss.
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OOPS!
 
Originally posted by Marc to Market


I filed for "mark to market" trading status. I'm by no means an accountant, but it's my understanding that under MTM accounting, there is no $3000 ceiling, as it's all treated as ordinary income. It really makes no difference to me since I haven't lost money and don't intend on it either.

Marc
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Marc,

who do you know that intends to lose money?
 
people may be psychologically inclined to lose money, but i dont know anyone that admits to getting up and going in to trade with the intention of losing money... they may lack skill and confidence, but they still trade with the intention of winning (psyche-wise).

disclaimer: the above statement excludes alphie.:D
 
The $3k writeoff rule is very unfair, not least because it was introduced years ago, in the '70's I believe, and has never been increased for inflation. If the republicans take the senate and hold the house, there is a reasonably good chance they will at least increase this absurd limit and also do something about dividend taxation. While the democrats are undoubtedly the sworn enemies of those who invest, many republicans are wishy washy at best, including members of bush's economic team and the chairman of the house apprpriations committee. They certainly do their best to look out for the investment banks and big accounting firms though.
 
Thanks everyone for your posts and contributions. You would be surprised at how many "individuals" out there, while engaged in the art of trading are classified, for tax purposes still as "investors." A $3,000 ceiling indeed, given the market conditions of this past year, is a complete joke. In perspective, this would barely cover the toilet paper or your dog's food given some of the tankings many of these pigs like Tyco, Dynegy, etc. took in 2002.

( Funny tidbit - I saw Mary Lisanti on CNBC today as I ate lunch. Of course I leave that crap channel on mute all day and never hear it.....but just for giggles, I wonder if she was still pushing Sycamore Networks as a super-duper strong strong buy. Since its come down from like $400 per share and recently traded for like pennies, probably a downgrade is in order.................) Speaking of which, anyone bottom fishing here on JDSU, BRCD, or EMC???
 
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