Question From A Loser

One more word of advice. If your trading is not profitable, lower the amount of shares you trade to a bare minimum until you get it right and the money starts coming in. JMO
 
Quote from graeco:

I saw this subject discussed a couple of months ago in a different forum.One person seemed to have personal experience and he claimed that CAPITAL losses can be carried over to following years and used to offset CAPITAL gains and you do not need to be recognised by the IRS as a trader,ie,that this applies to all investors.
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Exactly. Last year I finished deducting all my losses from 2000.
 
Capital losses can be carried forward indefinitely for any taxpayer. They can also be carried back, but you would have to file an amended return to do that. The principal benefit of filing under Sched C is it is easier to deduct trading related expenses. If you go Sched D, you are subject to a 2% of AGI hurdle before you can deduct trading expenses. If you or your spouse has a substantial income, that can be a real problem. Also, there is no $3,000 limit for Sched C filers on using trading losses to offset other income.

Check with your tax advisor to confirm this and all other tax opinions you read.
 
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