This is too hard to figure out! - Page 3

GreenTrader Tax · #31 (**permalink**) 04-16-2007, 06:48 PM

yes, a consultation is good, so you can see that service on our site and Mindy is still booking me for today.

e07 · #32 (**permalink**) 08-16-2007, 07:26 PM

Which entity can provide with 60/40 treatment, level of liability protection and allow trading related business deductions?

GreenTrader Tax · #33 (**permalink**) 09-25-2007, 10:59 PM

Pass through entities like limited liability companies and S-Corps.

LLCs can also elect to be taxed as an S-Corp.

C-Corps don't allow for 60/40 treatment.

Currency101 · #34 (**permalink**) 01-24-2008, 09:18 PM

Quote:

Originally Posted by GreenTrader Tax

T
Simple Answer to your question.

If you did not elect out of IRC 988, then report your forex trading loss in summary form (the net amount) on line 21 Other Income (Loss) of Form 1040. That's the last line above Gross Income.

If you want to elect out of IRC 988, how do you do that?

Quote:

If you elected out of IRC 988, then you report the forex gains or losses the same as futures gains and losses on Form 6781 (the 60/40 form).

It's that simple. Thanks.

If your two prior years weren't elected out of IRC, can you choose to do that (electing out of IRC 988) this year? I've read somewhere that if you didn't elect out, you're stuck with it. And if you want to change it, you must seek approval from the IRS. Is that true?

Thanks

GreenTrader Tax · #35 (**permalink**) 03-15-2008, 06:56 PM

It can be done as "good to cancel" and you can cancel it in a later year.

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