- Ag Docket
(petitioner claimed trade or business treatment as a trader; petitioner held call options on average for one to five months and numerous stock positions for over a year; IRS deemed petitioner to be an investment portfolio manager rather than being in the trade or business of trading; petitioner had 204 trades in 2006 on 75 days, 303 trades in 2007 on 99 days (including seven months in 2006 in which petitioner executed less than three trades in any given month; in 2008, petitioner executed 1,543 trades but only on 112 days; petitioner claimed $300,000 deduction on Schedule C associated with trades including margin interest expense (should have been claimed on Schedule A and limited to investment income); IRS denied deductions and court agreed; trading days does not include days in which investments open; petitioner not attempting to swings in daily market due to overall holding period of call options).
CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.