I think using a software like TradeMax can solve your problems. Its premier version supports unlimited transactions import, and supports importing trade data directly from scottrade without manual input. It also figures out wash sale very well. http://www.itrademax.com
they used to have something called gainskeeper that kept track of all this and you could print out at sched d worksheet. Don't know if they still do I haven't used them in awhile.
Yes, many people in this business also know tax. If you have to use a CPA. than thats 500 dollars per year that I save and you spend. Maybe you do need a degree to be a trader BS. Economics ASU
In order to avoid the wash sale rule being applied to 1000s of transactions, you can create an LLC. Then apply for trader status for that LLC. Then issue yourself a k-1. Would that work? The reason why I would never apply for trader status myself is because it is permanent and futures 60/40 tax treatment then no longer applies. I rather go for trader status through an LLC.
I think Warrenn Buffett pays taxes on his 100k$ annual salary he draws from Berkshire. He could pay less moving offshore, but I guess he prefers to stay in Omaha and pay his "fair share" of taxes, about 30k$ annually. Most people reading this will miss the point altogether. Bottom line, you live in The. Matrix, some rules must be respected, others can be bent, others can be broken, others can be made up as you go, but most importantly of all, beyond all rules, lies choice, red pill or blue pill, it is up to you. I can show you the door, but you have to walk through. Tens of thousands live outside The Matrix making their own rules, tired of politicians, etc, etc. Most prefer to stay slaves of The System. They are happier that way, turning a blind eye to what's obvious, I guess.
I've used tradelog for years when my gross has been over a million in trades. The software will import your broker's data, and it also adjusts all the trades for the wash sale rule. I used tradelog for 5 years in a row and never had an audit or question from the IRS. I have been a very active trader, scalping for 10 cents and such. Trust me, this will save you so many headaches. You just import the data from your broker, and it will adjust everything. Then, you just attach the schedule d to your return with 100 pages or whatever. The IRS typically looks at the first 3 pages, then shreds the rest.
Find and hire a good CPA, period. Forget about "accountants" or "tax experts"... Find and hire a good CPA with a small to mid-sized firm. A good CPA will structure you so you can defer taxes... And you are VERY unlikely to be audited with a reputable CPA... The IRS does not waste time auditing work done by top Professionals. For example... I've made 2,000,000 trades over 15 years... And have never had to list a single trade (Canada) on any tax filing... And I have never been audited... And my taxes have always been deferred by years via corporate Retained Earnings. Most people here are working out of a shoebox.... Low-end accountants and tax people will cause no end of trouble for you.... The right CPA is the single most important administrative thing you will ever do... If you are serious... never "save" money on accountants or criminal lawyers... You get what you pay for here.
YA blow your money on a CPA. Why don't you learn the tax code. All you have to do to file a return like this is study one very small part of the tax code. Go to IRS.GOV and get yourself an education.
False. Your credibility just went under the water: http://www.snopes.com/business/money/strip.asp http://www.jacobsen.no/anders/blog/archives/2004/03/02/the_burning_20_dollar_bills.html