Tax Questions

Quote from peilthetraveler:

If you made less than $7k for 2005 then you dont even have to file a tax return. Keep in mind thats total income from all sources.
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thats wrong.
 
As I said earlier, he must file since he traded and will otherwise be taxed for a ZERO basis on his sales!

He is not going to file MTM for 2005, the deadline was April 2005 for TY 2005. He can file on a Schedule C as an individual without flares going up!
 
Here is a brief excerpt from the IRS web site. Amounts are gross income, not adjusted gross. If you get a 1099 from your broker showing $100,000 in net sales and your cost was $95,000 then your net income from capital gains, long or short term, was $5,000. Was your gross income $100,00? I'd assume you have to file. Anyway, here is the extract:

There are some instances when you may not be required to file a federal income tax return. But keep this in mind — more than 70 percent of those who file are due a refund, so it may be to your advantage to file even if you are not required to.

Single — $7,950
Head of Household — $10,250
Married Filing Jointly — $15,900
Married Filing Separately — $3,100
Qualifying Widower (with dependent child) — $12,800

Generally, a person who is self-employed must file a tax return if his or her net earnings from self-employment for the year exceed $400.

Jack
 
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