Re: [CANSLIM] Deduction Subject to 2% Limit

From: "Robert Gammon" <rgammon51@yahoo.com>
Subject: Re: [CANSLIM] Deduction Subject to 2% Limit
Date: Wed, 23 Jul 2003 11:21:03 -0500 (CDT)

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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.

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 
not the wall street so I do not qualify as a trader. I do not 
think I ever want to be a trader for a living.
>
>For tax purposes, quicken is a good product to have. At the end 
of the year, it automatically calculates the Schedule C for you. 
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 
CANSLIM 
>approach?
>
>I am confused by Special Rules for Traders in Securities. On 
page 68 of 
>Publication 550, it said: "You must seek to profit from daily 
market 
>movements in the prices of securities and not from dividends, 
interest, 
>or capital appreciation."
>
>What does exactly daily market movements refer to in here? What 
is 
>capital appreciation refers to here exactly? If stocks average 
holding 
>period is 12 days. Does it qualify for profit of daily market 
movements 
>or capital appreciation?
>
>Your thought? Thanks in advanced,
>-Hong
>
>
>
>
>
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Robert Gammon
Houston, TX


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