I was watching CNBC today (pretty sad on a holiday I know...) and just saw a partner with Earnst and Young field a question about daytrader transaction reporting. The question was "is there an accounting firm that specializes in daytrading and what is an easy way to track each transaction for reporting purposes?" (or something like that). Her answer surprised me. She said she knew of no accounting firms for daytraders (well, she works for E&Y so that doesn't surprise me) but she basically said you should just look at the cost basis at the beginning of the year versus at the end of the year and just report one number on your taxes. The only caveat she mentioned was keeping good records "in case of an audit". Now for someone who is a partner at a major accounting firm I was very surprised to hear a recommendation like that. No mention of "trader status" or "mark to market accounting". All of my taxes in the past have either been partnership K-1s or futures marked to market, so I haven't had to deal with that, but as far as I know, the IRS rules are just the opposite. Sounds like terrible advice to put out on national television.