"We on this public forum do not need convincing ... keep your records in order for the IRS audit that may come your way ... they are the ones you must convince that you meet the definition of a trader. "
Okay, was not trying to convince anyone just replying to what people said and trying to keep their answers on topic. Like don't get my response here wrong, I appreciate all of your replies, its just you can clearly see that my response about meeting the criteria was in response to others doubting that I meet the criteria. Which takes the discussion off topic, because yeah the IRS is the ones who decide if I meet the criteria. So that is something that even really should not be discussed and goes off topic.
As I said, I appreciate all of your responses and even upvoted every response here, but off topic responses are off topic responses. I have every right to respond and try to keep the replies to on topic discussion about when someone can apply for and when the Sec 475 Mark to Market Election would actually take effect. Which I have done very politely and even upvoted their responses knowing it had nothing to do with the original question.
As you can see there have been 91 people who have looked at this discussion and I am likely not the only one researching this now. So taking the conversation off topic and making it about me personally on whether I qualify is wrong. Thank you in advance for understanding this.
@Critter-3 With that standing please give my your response to my previous reply:
@Critter-3I would also like to thank you for being the one who has replied twice to the discussion with on topic info so far. So please recognize that my other responses were responses to people taking the discussion off topic.
"Sell that new stock for $10 and you have a $1 gain, sell it for $7 and you have a $2 loss which is deducted on the return UNLESS YOU BUY IT AGAIN and the wash sale rules comes back into play."
So I think I understand now why Rick said this:
"Keep a list of "no trade" stocks towards the end of the year."
So basically as long as I stop say at the end of November and don't touch any stocks, the losses still count? Am I understanding that correctly?
If that is the case then I have to assume that the trader with the 800k tax bill on money that does not even exist never stopped trading the same stocks and that as long as I take a 31 day break before the end of the year I am fine? What about the 3K Capital Loss limitations?
