On 3/9/12 1:36 PM, Paul Hovnanian P.E. wrote:
Simple solution: End users can write off the cost of raw materials against
their income for tax purposes.

Speculators are trading in contracts. Contracts are private negotiations
between two parties, Why then should the IRS allow the cost of said
contract (commodities futures, for example) be written off against the
eventual capital gain realized by its sale? With physical goods, it can be
demonstrated that the inputs were necessary to generate the outputs sold.

I mean, for all I know, the initial payment was for hookers and blow. The
latter sale is 100% profit. The two transactions have nothing to do with
each other and the second should be taxed as pure profit.

Now, if you still want to trade commodities, go for it.



Great name for a public accounting firm:

Hookers&Blow