Tyler Hicks stated The secret of success in business is the effective use of other peoples money

IN my opinion this is a stone cold fact.

My own belief is that investing can be considered a business.

The good thing about Schedule D investing is that if you have a bad year and a major loss in one year.

You can carry that loss forward to the next years and use it to offset gains.

SO if you lose say 30k in 2003 and in 2004 and 2005 you made 12k a year.

That 12k a year or 24k total would be tax free. because the 30k would have a 27k carryover in 2004 and a 12k carryover in 2005.

The other 6k was sent to your form 1040 as a loss to be written off against your ordinary income at a rate of 3000 a year.

30k loss in 2003 became 3k going to your 2003 1040 as a loss and a 27k carryover for 2004.

In 2004 you made 12k profit on sch d, so you have 27k - 12k equals a 15k loss and then 3k goes to your 2004 1040 as a loss. So you carry over a 12k loss to 2005.

You made 12k profit in 2005 so its zero'd out by the 12k loss you carried over from 2004.

This is why I consider investing a business that you might consider funding with a low interest life of the loan balance.

ONLY USE A LIFE OF THE LOAN TRANSFER.

This is only my opinion