M2M Traders + Tax Question

Discussion in 'Taxes and Accounting' started by listedguru, Mar 28, 2009.

  1. This question is for M2M traders (stocks) who trade retail. Do you list every trade on form 4797 or just a summary line with a total of your buys and sells? I've heard your supposed to list every trade but some say a summary line will suffice.


  2. I'd like to piggy back a question here...How do you tell that you should declare M2M on your taxes? I st6arted trading last year, started with 25K ended thear with 100K took some hits along the way. This year I think I may continue and hope to be more successful, wondering if the advantage of M2M is truly worth it.

    Just looking ot get iudeas form people who have gone through it; of course I''ll do my own DD and get a tax acct. advice once I get to that point.
  3. a bump
    (no not the baby bump on michelle obama YUK)
  4. It seems (from what I have read so far) that the best alternative for a day trader is creating an entit, like LLC. Better tax advantage, can contribute more to retirement and less likely to be audited?

    IS it true that doing daytrading as a sole propietor leads to greater risk of audit and that as a sole proprietor or even just as an indivudual, that decalring "day Trader" status is tougher per IRS rules? (that IRS would expect you to belong to a traders office or something)