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taxes for traders
- Thread starter Moreagr
- Start date
Assuming that you are one person, filing taxes solo as an individual, using form 1040 for 2005, and as such you also had a requirement to file a form 1040 for 2004, then if you wanted M2M for 2005 you had to file the election by April 15, 2005.Quote from Moreagr:many wash sales.. which is the best recommendation as far a filing for trader status.
I have read about mark to market elections is this what i need and which form do i need to fill out?
Wash sales are not necessarily the end of the world...
You may elect M2M for 2006, if you file the election by April 15, 2006.
If you had any other situation other than the above, different rules might apply.
You could visit
http://www.greencompany.com/index.shtml
You could find there a lot of information about "trader status", which is the best thing you could do. There are no wash sale rule for "traders" and many other benefits.
There are too many conditions for me to elaborate here
http://www.greencompany.com/index.shtml
You could find there a lot of information about "trader status", which is the best thing you could do. There are no wash sale rule for "traders" and many other benefits.
There are too many conditions for me to elaborate here
Not really..Quote from OptionsWizard:There are no wash sale rule for "traders" and many other benefits.
http://www.irs.gov/taxtopics/tc429.html
The tax treatment of sales of securities held in connection with a trading business depends on whether a trader has previously made an election under section 475(f) to use the mark-to-market method of accounting. If the mark-to-market election was not made, then the gains and losses from sales of securities are treated as capital gains and losses that must be reported on Form 1040, Schedule D. Both the limitations on capital losses and the wash sale rules continue to apply
Quote from traderstatus:
Not really..
http://www.irs.gov/taxtopics/tc429.html
The tax treatment of sales of securities held in connection with a trading business depends on whether a trader has previously made an election under section 475(f) to use the mark-to-market method of accounting. If the mark-to-market election was not made, then the gains and losses from sales of securities are treated as capital gains and losses that must be reported on Form 1040, Schedule D. Both the limitations on capital losses and the wash sale rules continue to apply
You're absolutely correct. My appologies!
Quote from chewbacca:
What is the best tax software out there for active traders?
I always used
www.gainskeeper.com
Quote from traderstatus:
Assuming that you are one person, filing taxes solo as an individual, using form 1040 for 2005, and as such you also had a requirement to file a form 1040 for 2004, then if you wanted M2M for 2005 you had to file the election by April 15, 2005.
Wash sales are not necessarily the end of the world...
You may elect M2M for 2006, if you file the election by April 15, 2006.
If you had any other situation other than the above, different rules might apply.
has rule change, I thought "You may elect M2M for 2006, if you file the election by April 15, 2005.
nkhoi, The law was passed in 1997 and the IRS rules were made I believe in 1999. The M2M rules are easy on the surface, but quite complex when you get into the fine points. In no event (to my memory) have the rules for traders ever been so onerous that a taxpayer had the elect by giving as much advance notice as you suggest above.Quote from nkhoi:has rule change, I thought "You may elect M2M for 2006, if you file the election by April 15, 2005.