form 4797 and mark-to-market

B

bigpig41

Anyone know how losses on form 4797 are carried backwards or forwards to other year's "ordinary income" ?

Have all my expenses on schedule C and my gains and losses on part 2 line 10 of form 4797, but my tax preparer doens't know how(or her software doesn't recognize) to incorporate and carry backwards on FORM 1040 2008's losses backwards to 2006 when I had other ordinary income to go against this loss and give me a refund by refiling my 2006 return.

www.fairmark.com under "trader" says that a trader that has elected the Mark-to-market accounting method may carry losses backwards or forwards in the full amount against other earned ordinary income, but doesn't give the tax code or method supporting this notion.

Does anyone know the IRS code delineating whether this is true and if trader losses can be carried to prior years where income was earned in other professions?

Thanks in advance.
 
Quote from bigpig41:

Anyone know how losses on form 4797 are carried backwards or forwards to other year's "ordinary income" ?

Have all my expenses on schedule C and my gains and losses on part 2 line 10 of form 4797, but my tax preparer doens't know how(or her software doesn't recognize) to incorporate and carry backwards on FORM 1040 2008's losses backwards to 2006 when I had other ordinary income to go against this loss and give me a refund by refiling my 2006 return.

www.fairmark.com under "trader" says that a trader that has elected the Mark-to-market accounting method may carry losses backwards or forwards in the full amount against other earned ordinary income, but doesn't give the tax code or method supporting this notion.

Does anyone know the IRS code delineating whether this is true and if trader losses can be carried to prior years where income was earned in other professions?

Thanks in advance.
More...
its called a net operating loss.
 
are NOL(Net operating losses) in the trading business(as a mark-to-market trader) only allowed to be carried back against income in prior years that was generated in the same trading business; or could 2009 trading losses go against income generated as an employee in another business?? any ideas anyone?
 
Dude did you click on my link? Do you want to research an important tax question for yourself, or get an answer from some wacko on an internet message board?

Not that everyone is a wacko, but how do you know the person answering isn't a wacko? Can't you just see yourself in the IRS audit:

You: But bighoncho86 on elitetrader.com said it was OK!
IRS: You go to jail, you are now Charles Barkley's bitch!
 
yes........i read and am reading the site which introduces the concept of NOLs but naturally doesn't go into any detail. Will give them a call tommorrow.....would think someone here could answer the simple question of whether the NOL has to go against only gains made in prior years that was from trading as opposed to income made in say as an employee in a vacuum cleaner business?......after I resolve this I could clearly explain that simple concept to another board member in about three lines
:)
 
Good, Green is a good guy, although a touch on the expensive side. He'll probably want a $500 consultation. Then again, he knows what he's talking about, that's better than paying $200 to a schmuck who will end up insuring you are Barkley's bitch :eek:
 
You must log in or register to reply here.
Back
Top