Discussion:Day trader losses
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| Revision as of 17:37, 22 September 2009 Seaside CPA (Talk | contribs) (If taxpayer is c) ← Previous diff |
Revision as of 17:38, 22 September 2009 Seaside CPA (Talk | contribs) (Sorry, Kevin & I) Next diff → |
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| {{ForumReplyPost|UserID=Seaside CPA|Date=22 September 2009|Text=If taxpayer is considered a "trader of securities", and if he has filed a mark-to-market election, I do not think he would have a capital loss limitation. (This would not be reported on Schedule D; reported elsewhere) If he is considered an "investor", he would be limited on losses, & sales would be shown on Schedule D. Check out IRS website for more detailed information on these terms; do a search for day trader.}} | {{ForumReplyPost|UserID=Seaside CPA|Date=22 September 2009|Text=If taxpayer is considered a "trader of securities", and if he has filed a mark-to-market election, I do not think he would have a capital loss limitation. (This would not be reported on Schedule D; reported elsewhere) If he is considered an "investor", he would be limited on losses, & sales would be shown on Schedule D. Check out IRS website for more detailed information on these terms; do a search for day trader.}} | ||
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| + | {{ForumReplyPost|UserID=Seaside CPA|Date=22 September 2009|Text=Sorry, Kevin & I were posting at the same time.}} | ||
Revision as of 17:38, 22 September 2009
Discussion Forum Index --> Advanced Tax Questions --> Day trader losses
Discussion Forum Index --> Tax Questions --> Day trader losses
| 22 September 2009 | |
| I think I know the way to handle this, but just to make sure:
I have a client that sold over $10 million in stocks in 2007 and had a $500K gain, in 2008 lost everyting, sold $80 million in stocks and had a loss of $750K. Everything is short-term. I know ordinarily, a person cannot carry back the losses to offset to 2007 gains, but do those same rules apply if they are a day trader and have no other income? | |
| 22 September 2009 | |
| if he elected the mark-to-market treatment, then he might have an NOL for 08, which could be carried back 2-5 years. Otherwise, no, he has a capital loss - carryforward only, and use up at $3,000 per year above gains. So if he lives another 250 years, he will recoup it, except for the time value of money. | |
Seaside CPA (talk|edits) said: | 22 September 2009 |
| If taxpayer is considered a "trader of securities", and if he has filed a mark-to-market election, I do not think he would have a capital loss limitation. (This would not be reported on Schedule D; reported elsewhere) If he is considered an "investor", he would be limited on losses, & sales would be shown on Schedule D. Check out IRS website for more detailed information on these terms; do a search for day trader. | |
Seaside CPA (talk|edits) said: | 22 September 2009 |
| Sorry, Kevin & I were posting at the same time. | |
