- 34 -
Ms. Rivera's reported ordinary losses from Merit trading
activities in 1981, compared to her 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
$13,9271 ($63,176) $77,103 82%
1 Ms. Rivera's adjusted gross income reflects ordinary losses
from Merit trading totaling $63,176. This amount includes
cancellation fees and $17,426 identified as "options" on her
return. The capital losses appear to have been incorporated in her
loss carryover.
(3) 1982 Transactions
In January 1982, Ms. Rivera recognized the unrealized gains
from her stock forwards account, now totaling $701,750. She
withdrew her cash balance of $203,850, then deposited $10,000 in
April and $14,035 in May. There was no trading in her account
until July 1982. At that time, her trades generated capital losses
of $245,484. In October, the account incurred capital losses of
$313,483, and in December it incurred additional capital losses of
$209,385, for a total of $768,352. These losses exceeded the
$701,750 capital gains realized in the previous January by $66,602.
She also incurred cancellation fees of an additional $35,877. The
amount of the cancellation fees, $35,877, was added to her cash
account. For 1982, all of her combined cancellation fees and
losses from the account exceeded her gains--including an amount of
$2,427 as "other" income--by $100,052. The account also retained
an unrealized gain of $105,498 into 1983, plus a capital loss
carryover of $123,570. These transactions, when compared to her
Page: Previous 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 NextLast modified: May 25, 2011