Tax Archives - Traders Log

How to Setup Your Trading Entity as a Business

TradersLog — Wed, 06 Jul 2011 18:01:50 +0000

I’m sure you’ve heard the saying to become a successful trader you must “treat trading like a business.” Setting up a trading entity correctly is an important step if you are a business trader whose full-time position is (currently or soon to be) trading the markets.

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$7,000 of Tax-Free Income Every Year

TradersAccounting.com Research — Thu, 24 Sep 2009 19:12:02 +0000

If you are trading through a corporation or combination of legal entities that includes a corporation, you have the opportunity to obtain tax-free income by the proper utilization of a little-known tax code provision, Section 280A. This article will address the concept behind this strategy, the rules for its operation, and then conclude with several

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Trader Tax Forms

Jim Forrester, CPA — Thu, 24 Sep 2009 19:00:44 +0000

Trader income tax preparation can be overwhelming for the first-time filer. Even many experienced traders prefer to entrust their federal income tax return to Traders Accounting’s tax professionals rather than battle it alone. You know trading; we know trader taxes. It’s just common sense.

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Trade as a Business Entity and Reap the Benefits

Jim Forrester, CPA — Thu, 24 Sep 2009 18:59:55 +0000

The Internal Revenue Service has two tax codes: one for businesses, the other for individuals. Because businesses grow money both by paying taxes and employing other taxpayers, they are rewarded and encouraged through a benevolent tax code. Individuals, however, are treated far more harshly by routine tax hikes and diminishing deductions.

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Tax Strategies for Forex Traders

TradersAccounting.com Research — Thu, 24 Sep 2009 18:48:35 +0000

Forex, the foreign currency exchange market, can be a lucrative one indeed for traders skilled in its dynamics. This worldwide network of government central banks, commercial and investment banks, hedge funds, international corporations and brokerage firms enables traders to capitalize on the rise and fall of a currency dollar volume that exceeds $1.4 trillion every

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Mark-to-Market Accounting

Jim Forrester, CPA — Thu, 24 Sep 2009 18:34:54 +0000

One of the most important decisions you will make as a trader is whether to elect the mark-to-market (MTM) accounting method. Although MTM is only available to traders, not investors, and does offer some significant tax advantages, it is not right for everyone. What makes this decision so important is that once you select MTM,

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Futures: What You Trade Determines How You’re Taxed

Jim Forrester, CPA — Thu, 24 Sep 2009 18:18:59 +0000

Futures trading covers a vast array of trading instruments, from stock indices and U.S. Treasury bonds to precious metals, energy sources such as oil and gas, and everyday foodstuffs including meats, grains and coffee.

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