Suddenly the topic makes sense. Your CPA can't determine your trading strategies from what trades you've taken. Relax.
The only time where it would be relevant to share your strategy with your accountant is if your strategy has a specific tax implication (like trying to take advantage of a tax loophole or conducting a tax arbitrage).
Did your tax accountant ask you for access to your trade strategies or did someone give you information that your tax accountant will ask you for access to your trade strategies ? wrbtrader
In reality, the accountant will probably be chuckling to himself thinking about the trading losses he will be able to write off next tax season
It boggles the mind as to how an accountant would know your trading strategies just by looking at your trading records? I have an accounting degree and do my own taxes and also, trade. No way in hell will your accountant be able to figure out your trading strategies just by looking at your trading records which are nothing more than records of your buys and sells. Maybe, you should fear your broker getting your trading strategies because they actually, store your trading history in their computers?
I suspect the OP was not asked by his/her accountant to reveal the strategies that produced the results (bad or good) on his documentation for his tax filing. Simply, its something he assumed in error and decided to post his questions here to make sure he doesn't have it wrong prior to seeing his tax accountant. Yet, if his tax accountant was also a trader and searching for a winning strategy...in walks a trader with broker statements, withdrawals of the profits from the broker and such... I wouldn't be surprise if a tax accountant decides to hang out with you after work to talk about the markets and strategies but not via a way that the OP implied that a tax accountant will ask for the details of your strategies to verify the profits...the latter will never happen. Then again, we don't know the details of that tax accountant...it could be someone that works for the mafia and they want to know everything / how you're doing it. wrbtrader
It doesn't matter if he uses discretion or not. Do you think the average CPA is going to reverse engineer a mechanical trading system by looking at executions alone?
Well that is the question. I don't think so, but "average" CPA can higher "expert" help when lots of money is at stake.
The CPA never sees your trades when preparing the return. He downloads the net numbers of gains and losses from your broker inc. wash sales. He puts it in a tax program and then walla it ends up in your tax return. This thread with exceptions is populated by posters who don't actively trade.