Re: [CANSLIM] Deduction Subject to 2% Limit

From: "Pritish Shah" <pshah@lason.com>
Subject: Re: [CANSLIM] Deduction Subject to 2% Limit
Date: Wed, 23 Jul 2003 12:23:41 -0400

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Sorry I meant I do not use Schedule C for CANSLIM.

>>> rgammon51@yahoo.com 07/23/03 12:21PM >>>
The use of Schedule C for trading without a letter from the IRS=20
certifying you as a trader incurs a high risk of an audit where=20
all expenses allowable will be moved to Sch A.  The rules for=20
being a trader essentially say a consistent pattern of trading=20
and trading for short term gains.  Stock that are held for as=20
long as a month will disqualify as a trader.  Traders MUST have=20
substantially all of theire income from trading.

Robert Gammon
Houston, TX
I prepare taxes for a living

On Wed, 23 Jul 2003 12:06:39 -0400, Pritish Shah wrote:

>
>I do use Schedule C for CANSLIM. My major source of income is=20
not the wall street so I do not qualify as a trader. I do not=20
think I ever want to be a trader for a living.
>
>For tax purposes, quicken is a good product to have. At the end=20
of the year, it automatically calculates the Schedule C for you.=20
This data you can import in Turbo Tax or Tax Cut.
>
>Pritish
>
>>>> Hong Hsu <honghsu@bellatlantic.net> 07/23/03 11:44AM >>>
>
>Does anyone here uses Schedule C to tax return 1040 while using=20
CANSLIM=20
>approach?
>
>I am confused by Special Rules for Traders in Securities. On=20
page 68 of=20
>Publication 550, it said: "You must seek to profit from daily=20
market=20
>movements in the prices of securities and not from dividends,=20
interest,=20
>or capital appreciation."
>
>What does exactly daily market movements refer to in here? What=20
is=20
>capital appreciation refers to here exactly? If stocks average=20
holding=20
>period is 12 days. Does it qualify for profit of daily market=20
movements=20
>or capital appreciation?
>
>Your thought? Thanks in advanced,
>-Hong
>
>
>
>
>
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Robert Gammon
Houston, TX


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