Re: [CANSLIM] Deduction Subject to 2% Limit

From: Hong Hsu <honghsu@bellatlantic.net>
Subject: Re: [CANSLIM] Deduction Subject to 2% Limit
Date: Wed, 23 Jul 2003 13:41:24 -0400

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 >An average holding period of 12 days is LIKELY to disqualify you as a 
trader. >Traders hold very few positions overnight.


Rob,

    Thanks for your info.  But my questions remain unanswered. that is, 
"What is daily market movements in the prices of securities and what is 
capital appreciation from that price".  Can you give precise answer to 
that from your professional experiences?  
 

>The use of Schedule C for trading without a letter from >the IRS certifying you as a trader incurs a high risk of >an audit where all expenses allowable will be moved to >Sch A.

That is interesting info.   What is the procedure that the IRS use to 
certify someone as trader?  I will appreciate if you could share that 
information with us.
- -Hong

 

Robert Gammon wrote:

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



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