Scary tax situation I need advice

Shouldn't you be able to just not trade any of the same stocks for the last 30 days of the year? I was under the impression that this is only a problem if you trade them from one tax year to another under 30 day thus defering the loss until the next year.
 
That's a weired problem that most people here aren't going to encounter ...

Maybe file a protest, get a decent tax man, and continue the successful trading just in case you have to pay-up all that money (yep, I know it sucks).

Good Luck and keep going ... it could be so much worse.
 
Quote from Sky123987:

I'm currently prop now so I don't have to worry about this because I'll get a K1, but I traded retail from Jan 08' to Jun 08 but my income is going to be a TON TON TON more because in 2008 because I didn't elect mark to market. Is there anything I can do?

Thanks
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Fast forward to January 2009.

You will get a 1099 for all your personal retail trading from January 2008 through June 2008.

You will get a K1 for the prop stuff from July to Dec 2008.

If you did no personal retail trading from July 2008 to Dec 2008, you should be fine since you didn't carry over the trading of those particular ticker symbols into 2009 on a retail basis, hence the wash sale rule would not apply since you did not rebuy the same security within 30 days.

In fact, the $70k of losses that you were nailed for in tax year 2007 will carry over into 2008 to reduce your gains.

Again if you stopped ALL personal retail trading at the end of June 2008 you will actually have a lower tax bill because you can take the $70k loss carryover from 2007 (due to wash sale rule) and apply it against your retail trading profits from Jan to June 2008.

Your tax bill will probably be lower than you think for 2008.

I think you are fine given the facts you stated.
 
Call Robert Green from greencompany.com. You may have to pay him for a consult but explain your situation and he may be able to help you. He is not cheap but he is the best in the tax trader business.

The only complaint I've ever heard about him is that he won't go for questionable deductions, which to me is not a bad thing.
 
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