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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

88.0. "How to report capital gains/losses on schedule C?" by TALLIS::KOCH (DTN226-6274 ... If you don't look good, DEC doesn't look good.) Mon Mar 02 1992 19:28

     I want to start filing a a Schedule C as an option trader.

     The main contribution will be a capital gain or loss.

     How can I segregate option trading capital gains from other capital 
gains?  It is difficult to believe that two Schedule Ds can be filed.
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88.1Why seperate capital gains/losses from option trading?VMSDEV::HAMMONDCharlie Hammond -- ZKO3-04/S23 -- dtn 381-2684Tue Mar 03 1992 18:1514
re: 88

>     How can I segregate option trading capital gains from other capital 
>gains?  It is difficult to believe that two Schedule Ds can be filed.

      If  you  are  suggesting  that  dapital  gains/losses  from option
      trading are different for tax purposes thatn capital  gains/losses
      from other activities then that is news to me.
      
      In  other  words,  I  don't  know WHY you want to seperate them on
      Schedule D. 
      
      So  if  somebody  answers your question maybe they'll enlighten us
      all on this?
88.2There are schedule D extentions. CSC32::B_HIBBERTWhen in doubt, PANICTue Mar 03 1992 19:047
There are extended schedule D forms.  They are basically extensions of the 
item,dates,buy,sell,gains lines of schedule D.  I don't remember the names of
the forms.

  Why are you filing schedule C?  I don't remember what this one is for.

Brian
88.3NOTIME::SACKSGerald Sacks ZKO2-3/N30 DTN:381-2085Tue Mar 03 1992 19:543
Schedule C is Profit or Loss from Business.  I'm not sure if you can even
consider trading options for your own account to be a business.  If you can,
you may end up having to pay self-employment tax.
88.4NOTIME::SACKSGerald Sacks ZKO2-3/N30 DTN:381-2085Wed Mar 04 1992 14:094
If you want to call your options trading a business so you can deduct
office-at-home expenses, you can't, according to Publication 17.  You
have to use the office for meeting with clients.  If you use it just to
read the WSJ and call your broker, you're out of luck.
88.5TALLIS::KOCHDTN226-6274 ... If you don't look good, DEC doesn't look good.Wed Mar 04 1992 15:5714
     I want to run my option trading as a schedule C business.  I'm 
allowed to do this. 

     There are certain kinds of deductions I can take.  They may become 
more significant in the future, but that is irrelevant for now.

     The business's income or loss is from capital gains.

     I have other capital gains and losses that go on Schedule D.

     I still don't see how to have non-Schedule C capital gains/losses 
_and_ Schedule C gains/losses without filing two Schedule Ds.  But filing 
two of the same form seems screwy to me.
     
88.6NOTIME::SACKSGerald Sacks ZKO2-3/N30 DTN:381-2085Wed Mar 04 1992 17:216
re .5:

>     I want to run my option trading as a schedule C business.  I'm 
>allowed to do this. 

I'm not trying to give you a hard time, but could you cite a source for this?
88.7Barron's.TALLIS::KOCHDTN226-6274 ... If you don't look good, DEC doesn't look good.Thu Mar 05 1992 12:147
>>     I want to run my option trading as a schedule C business.  I'm 
>>allowed to do this. 
>
>I'm not trying to give you a hard time, but could you cite a source for this?

     There have been articles in Barron's about how if your trading 
activity is great enough, the IRS will accept it as a business.
88.8NOVA::EASTLANDThu Apr 02 1992 20:252
    
    Only if you make a profit once in a while. See Lassers on this.