Active trader tax help

Discussion in 'Taxes and Accounting' started by dexgreen, Aug 23, 2013.

  1. dexgreen

    dexgreen

    Hi all,

    Anyone got any recommendations over what accounting firm to use for help with taxes for an active trader. Thinking of incorporating and need some help finding someone familiar with active trader nuances to help me. Love to hear if you guys have any favorites to use (or to avoid).

    Thanks,
    Dex
     
  2. 1245

    1245

    Some of my clients use http://www.gainskeeper.com/ to do the reporting. With what they give you and their advise, any account should do fine.

    1245
     
  3. hafez50

    hafez50

    dex forget incorporating its all bs. just file with the irs for mtm trading and use trade log to do the accounting. you can buy smaple tax returns from green and co and study those and just use there fed statement sheets that explain what a mtm trader is. i've been doing my own 10 yrs and never a problem
     
  4. +1 for tradelog and +1 for not incorporating. the benefits, IMHO, are marginal (for most traders anyways) while the cost (in terms of money, time to set up, stress, increased chance of audit) is too high.
     
  5. Pipflow

    Pipflow

    Well in my country may be any CA (chartered accountant) or Advocate would be the best persons to contact in person otherwise you may seek the help of online websites.
     
  6. If trading is your sole income...this might be right. My CPA has recommended a LLC or Partnership to help with my W2 earnings...i.e. being able to reduce my AGI. So ironically, if my CPA is giving good advice, it might be more benefical to create the pass through entity if you can justify the trading as a business and use it to help with your "normal" W2 taxes. If your only job is trading not sure....
     
  7. Can anyone explain why tradelog would be necessary to file if you are using MtM accounting?
     
  8. Even though MTM accounting is easier, form 4797 requires line by line reporting. Tradelog does that for you.