Posted by JT-IN on January 01, 2002 at 20:36:17:
If you are describing Cap Gains, in 6 months or less, then these are Short Term Cap Gain; (STCG). STCG are taxed at the same rate as your marginal tax rate; like 28%, or as high as 38% in 2002. In order to qualify for tax favored Cap Gains, you must hold the investment for longer than 12 months.
As to whether the IRS will view your activity as income, instead of STCG? Probably… You may want to review an article by John Hyre, in the How To Article Section of this site, where he discusses “Dealer Activity” in detail.
Just the way that I view things…