Trader Tax Forms

By Jim Forrester, CPA 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. But all traders can benefit from a … Read more

Trade as a Business Entity and Reap the Benefits

By Jim Forrester, CPA 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. … Read more

Schedule D Tax Breaks

“How I Turned My Frustration With the Schedule D Into a Tax Break I Could Drive My SUV Through” If you are a trader and you want to reduce your taxes, there are issues potentially worth many thousands of dollars to you that you need to consider right away. In this article we are going … Read more

Paying Your Estimated Quarterlies

The following is a summary of the requirements for paying your estimated quarterly taxes. Individuals: The general rule is that at least 90% of an individual’s final income tax liability is to be paid through either withholding or estimated tax payments. The estimated tax is the amount of income and self-employment taxes, as well as … Read more

Mark-to-Market Accounting

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, … Read more

Limited Liability Company

Jim Forrester, CPA The limited liability company, or LLC, is often referred to as a hybrid legal entity because it attempts to combine the advantages and minimize the disadvantages of the sole proprietorship/partnership on the one hand and the corporation on the other. Although LLCs have been popular throughout Europe and South America for more … Read more

Incorporation May Make Sense in the Long Run

Jim Forrester, CPA When it comes to securing your business status in the eyes of the Internal Revenue Service, nothing carries more weight than the initials “Inc.” Incorporation elevates you as an enterprise with a vision, one that plans to grow, flourish and pay your fair share of taxes for years to come. Not all … Read more

Futures: What You Trade Determines How You’re Taxed

By Jim Forrester, CPA 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. Some futures traders buy and sell futures contracts to establish a current price of a purchase or … Read more

Don’t Be Hung Out to Dry By Wash Sales

Jim Forrester, CPA The Internal Revenue Service loves to tax capital gains, but they are just as diligent to disallow capital losses that might offset those lucrative cash cows. Case in point: the wash rule. The wash rule prohibits traders and investors from claiming a capital loss if they buy replacement stock 30 days before … Read more