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the same year, was as follows:
A.G.I. Merit Loss % of A.G.I.
Per Return Losses w/o Merit Loss
$2,799,1701 ($2,725,268) 97%
1 Mr. Keeler's adjusted gross income was the figure
represented above. He deducted Merit stock forwards losses of
$2,725,268 for that year, however, in effect reducing his income to
$73,902.
(3) 1983 Merit Transactions
Mr. Keeler retained unrealized income on the "gain" legs of
his trading in the amount of $9,851,790 and carried it into 1983.
The taxable incidents of Mr. Keeler's 1983 trading in Merit stock
forwards, however, were very modest in comparison to those of the
prior 2 years. His taxable transactions for that year took place
only in November and December 1983; his taxable year ended with a
net Merit trading loss of $35,230 of cancellation fees and an
additional unrealized loss of $2,520. He did, however, report net
profits of $630,446 from his profession of "investments". During
1983, Mr. Keeler established an additional 24 stock option
straddles; in 20 of these he retained both the gains and losses and
carried them into 1984. In 1983, Mr. Keeler neither added to, nor
subtracted from, his cash margin account.
Mr. Keeler's net realized losses from T-bill options and stock
forwards in 1983, compared to his adjusted gross income in the same
year, were as follows:
A.G.I. Merit A.G.I. Loss % of A.G.I.
Per Return Losses w/o Loss w/o Merit Loss
$621,480 ($35,230) $656,710 5%
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