Kermit...I surely aint no tax advisor & dont even pretend ta play one on the Inet (or tv for that matter)..however from my slighlty above limited experience, what I've come to learn is that as far as taxes & trading go there's 2 laws to look at....one is how the Fed taxes cap gains & thus converseley treats write-offs (losses). The 2nd of course is how your specifc filing state treats the above....which of course varies from state to state....& these tax laws always seem to be changing from state to state as well on just about a yrly basis.
If u wanna play it safe, I hate ta tell ya but u r gonna have to pony up for an hr or 2 of basic tax consultation in your area. If you wanna play it as a biz, or even contemplate doing so & don't wanna be worried about Uncle Sam playin any games w/ya (especially if you've already been flagged in the past) my sugg, no matter what anyone here tells ya or any free advice ya happen ta get, seek out a fully certified tax pro just to be safe. it'll prolly cost ya no more than $250-$300 to get some sound advice but, if you do decide to treat as a biz opp, that money spent will at least be your 1st biz expense overhead write-off. ;))
GL w/it.....heck, after hearin Paulsen speak just now....maybe u would even qualify for some of the TARP droppings? ;)~
"Risk comes from not knowing what you're doing"
Warren Buffet
