TTB and Wash Sales

[solomon]

In 2006 version on 6-12 the chart shows that a security trader is subject to wash sale rules. However, this seems to be contradicted by Reg. 1.1091-1(a)(1).

[jainen]

Not at all

>>contradicted by Reg. 1.1091-1(a)(1)<<

Not at all. Exception (1) describes an individual dealer, not a trader, just as exception (2) describes a corporate dealer. Trading activity does not constitute a business. Although a trader can deduct operating expenses on Schedule C, the income is from capital investments reported on Schedule D. Wash sale rules apply.

[solomon]

Thanks

Guess I need an Evelyn Woods reading course.