Re: [CANSLIM] Deduction Subject to 2% Limit

From: Spencer48@aol.com
Subject: Re: [CANSLIM] Deduction Subject to 2% Limit
Date: Wed, 23 Jul 2003 12:18:52 EDT

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Hong:

     I don't use Schedule C (business expenses) to deduct my trading=20
expenses; nor am I an accountant, but here is how I understand the passage o=
f=20
Publication 550 that you quote:

     You don't need to realize your profit each day (ie sell your holding),=20
only seek out a profit each day due to the mkt movement. =20

     The reason it says, "...not from dividends, interest, or capital=20
appreciation,=E2=80=9D I believe is to assure the IRS that the trader is act=
ually making=20
money from trades based on the movements in the market, not on items which=20
indicate that the investor is not in the business of trading.

jans

In a message dated 7/23/2003 11:45:35 AM Eastern Daylight Time,=20
honghsu@bellatlantic.net writes:

<< Does anyone here uses Schedule C to tax return 1040 while using CANSLIM=20
 approach?
=20
 I am confused by Special Rules for Traders in Securities. On page 68 of=20
 Publication 550, it said: =E2=80=9CYou must seek to profit from daily marke=
t=20
 movements in the prices of securities and not from dividends, interest,=20
 or capital appreciation.=E2=80=9D
=20
 What does exactly daily market movements refer to in here? What is=20
 capital appreciation refers to here exactly? If stocks average holding=20
 period is 12 days. Does it qualify for profit of daily market movements=20
 or capital appreciation? >>

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