Hi anybody here used a firm called trader accounting ? I am trying to set up myself as trader . I do want to know if it it worth it. Trader accounting setup cost is at Least 3k so I would thinking if one can do have expenses and Profit loss of atleast 20-30k yearly and get some write off will probably find value for setting up a trading business . Anybody got opinions here
Plz share if ok. Learning along and want to do the business just don’t know if it going to be worth it and another drain. Haha . This is for trading business as side hustle
I think it’ll be worth if the structure is right and the trading strategy fits your needs and I dm‘d you the info for the firm
I would think that spending 3 grand to have your taxes done for a trading income of 30 grand is excessive. I would suggest spending a little time to study the tax system and then do your own taxes with the help of one of the commercial tax softwares available.
If your trading is a "side hustle," then it may not meet the criteria established by the IRS to be a trader for tax purposes. You should start by reading the section of IRS Publication 550 that explains the rules. There is no bright-line test that determines whether you qualify as a trader for tax purposes. It is based on all of the facts and circumstances. The IRS does not make such determinations in advance. You assert your status as a trader by filing your tax return with the appropriate election and reporting methods. The IRS only makes a determination if your tax return is selected for an audit. And that can happen up to three years after you have filed your tax return. And it is not a one-time determination. The IRS can audit multiple years. The fact that you qualify as a trader for one year does not automatically mean that you qualify as a trader for another year. In some cases, there may be some real benefits to hiring a qualified accountant to help you set up your business. But no accountant or firm can guarantee that the IRS will accept your position that you are in the business of trading. They can help you set up the business, and they may give you very good advice. But whether you are considered a trader for tax purposes hinges on the specific facts and circumstances of your trading and other sources of income. And as I noted previously, you may qualify in one year but not in another. You may never get audited. But if you do, the IRS will determine whether you are in the business of trading based on what you did that year. Their determination will not be based on a bunch of fancy paperwork, or an LLC, or an S-corp, or whatever the firm did for you a few years earlier. IRS Publication 550 is attached. The relevant section begins on page 67.