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Posted by ayeshahill on July 28, 2008, 12:19 am
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Need some tax advice
I am thinking of spending time playing the ETF/ stock market. Can I
make this a business ?
ie do my taxes for this activity via Schedule C ?
Is this a possibilty ?
If so, can I deduct all my expenses in Sch C like commissions, laptop
purchase, internet charges, etc.
Pls let me know.
Thanks in adavnce,
Ayesha Hill
USA
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Posted by joetaxpayer on July 28, 2008, 1:17 am
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ayeshahill@gmail.com wrote:
> Need some tax advice
>
> I am thinking of spending time playing the ETF/ stock market. Can I
> make this a business ?
> ie do my taxes for this activity via Schedule C ?
>
> Is this a possibilty ?
>
> If so, can I deduct all my expenses in Sch C like commissions, laptop
> purchase, internet charges, etc.
http://www.irs.gov/taxtopics/tc429.html
should help you out.
Joe
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Brew1 on July 28, 2008, 12:47 pm
Please log in for more thread options On Jul 28, 12:19 am, ayeshah...@gmail.com wrote:
> Need some tax advice
>
> I am thinking of spending time playing the ETF/ stock market. Can I
> make this a business ?
> ie do my taxes for this activity via Schedule C ?
>
> Is this a possibilty ?
>
> If so, can I deduct all my expenses in Sch C like commissions, laptop
> purchase, internet charges, etc.
>
> Pls let me know.
>
> Thanks in adavnce,
>
> Ayesha Hill
>
key words "...thinking of spending some time playing..." the IRS is
highly unlikely
to accept your position. Full-time, primary source of income is
different.
Also, if you want to use mark-to-market, you must file a 3115 by April
15th PRIOR
to the year you want to change accounting methods.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Phil Marti on July 28, 2008, 3:01 pm
Please log in for more thread options "Brew1" wrote:
> key words "...thinking of spending some time playing..." the IRS is
> highly unlikely
> to accept your position. Full-time, primary source of income is
> different.
Do you have some personal experience regarding IRS's treatment of people who
claim trader status for some activities, but not as their primary
occupation? Pub 550 certainly implies that such activity, which includes
reporting expenses on Schedule C, is allowed. If IRS is doing something
else in practice I'd like to hear about it since I've recommended several
people look into trader status.
--
Phil Marti
Clarksburg, MD
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Brew1 on July 28, 2008, 5:27 pm
Please log in for more thread options > "Brew1" wrote:
> > key words "...thinking of spending some time playing..." the IRS is
> > highly unlikely
> > to accept your position. Full-time, primary source of income is
> > different.
>
> Do you have some personal experience regarding IRS's treatment of people who
> claim trader status for some activities, but not as their primary
> occupation? Pub 550 certainly implies that such activity, which includes
> reporting expenses on Schedule C, is allowed. If IRS is doing something
> else in practice I'd like to hear about it since I've recommended several
> people look into trader status.
>
> --
> Phil Marti
> Clarksburg, MD
>
I know of them denying trader status for someone who did the majority
of their trading in January and in the summer,
with infrequent trades the rest of the year. As to primary activity,
topic 429 does mention this as one of four factors:
Typical holding periods for securities bought and sold.
The frequency and dollar amount of your trades during the year.
The extent to which you pursue the activity to produce income for a
livelihood, and
The amount of time you devote to the activity.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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