Hi GreenTrader Tax,

I've begun reading your articles and am starting to feel enlightened, and am able to make some assumptions. I hope they are correct. I will review your site more closely, a great resource.

I trade spot forex, only. At my current level of income (job + forex) I would remain in the ~20% tax bracket at year‘s end. I think that means if I don't opt out of IRC 988, forex will be taxed at my ordinary rate of ~20%, which is marginally better than if I used 60/40. (Based on 60 @ 15% and 40 @ 35% - not sure if that is correct, just an estimate).
Therefore, IRC 988 might be the best for me at this time?

I hope that in 2007 I will make enough forex $ to bump up in tax bracket. Then it might be prudent to have opted out of IRC 988?
Is it possible for an Individual tax filer to contemporaneously opt out of IRC 988? And, if so, how do I prove/do that? Or with my current Non-trader tax status, would I be stuck with IRC 988?

I’m guessing that opting out of IRC 988 is a benefit of "Trader" status, and there might be other benefits, too. This is another avenue of confusion that I will seek more info. Next April should be much less confusing than past.

Thanks-
Sniper.