For you guys who scalp, when you file your taxes do you have to enter every trade, or do you aggregate them on the tax form to simplify things?
aggregate them if you're a very heavy trader and do it full time. it's almost impossible to show 200k trades a year or 4000 pages.sure you can do it but the irs has no interest in seeing every trade. now the irs clarified things in a statement about 9 months ago saying the laws never changed and the law says to show every trade. i believe this is to prevent the huge abuse of part time traders from claiming the sch c writeoffs. but if you have hundreds of millions to billions of sch c trades i just don't see a problem.you also msut have mtm status i beleive. if they want they can audit your monthly statments to see your income and if you traded almost daily. now most of the people on here have no problem as they'r e prop traders getting k-1's. the irs has always been vague on trader laws and one msut do what he thinks is right for his situation and be ready to back what he does up if audited
Who says you need MTM status? Why would you use MTM if you are trading through a K1? Please, DO NOT post accounting information unless you are a CPA or have a clue about Trader's accounting. If you DO not attach a record of your trades, as an individual, IRS may or may not ask for them years down the road, and can and will audit the entire return. Either include a record on the schedule D, or be prepared to be audited. PS: You spell like English is a second language or never passed grade school spelling!
you're an idiot surdo. i said k-1 prop guys need not worry about this as they get a k-1. i've not been attaching my trades for 10 years and have never had 1 problem.if you ahve something to hide then you should be scared. sure the irs can ask for what they want but thye always could. if you're not a k-1 receipentyou need mtm. i know more in my pinky than you know about trader taxes. as always consult a cpa but you'll get 10 different oponions
A. You DO NOT need to be MTM if you are not on a K-1. B. I hope you trade a little better than you spell SFB's.