What To Expect
Taxes in Day Trading - What are the Consequences and Regulations for Active Traders
To quote a United States Congressman, "Our tax code is so long it makes War and Peace seem breezy". Tax law continues to grow more complex with new legislation being introduced each year. To complicate matters on taxes in day trading, there seems to be no clear cut answers, only general guidelines and interpretations from tax law cases. As the experienced industry leader in taxation for active day traders, Traders Accounting's tax professionals draw on their diverse perspectives and skills to give you seamless service through all the challenges of tax planning, financial accounting, and tax compliance.
Since 1998, Traders Accounting has been a resource to thousands of individuals looking for knowledge regarding taxes on day trading and tax consequences. Most of our clients do not feel their current CPA firm has the knowledge required to handle complexities of their trading.
"You are absolutely correct 95% of CPA's are not sufficiently educated in this area to properly service their clients." -Henry S., IN
What is New in the 2011 Tax Season?
The Tax Department expects to use its new internet portal during the 2011 filing season to exchange tax information with clients. The portal is currently in the final stages of completion and clients can expect to be notified when the portal is ready for use.
Beginning in 2011 brokerage firms will be required to report the basis for stocks purchased during the 2011 tax year. In addition to the new basis reporting requirement, the IRS has changed the look of the Schedule D. The Schedule D no longer allows for the reporting of individual trades instead it requires the new Form 8949 be completed. Currently the new basis reporting only applies to individual income tax returns and does not apply to corporations or partnerships.
The amount of start-up costs which can be expensed on the initial return of an entity is $5,000 which is a decrease from the $10,000 deduction allowed for tax year 2010.
For more detailed information on tax returns, visit the tax return page.
Additional Services Offered
Traders Accounting specializes in services for day trader taxes however, our services are not limited to traders. Listed below are some but not all of the additional services offered.
Investors, while similar in certain respects to traders in securities, have their own unique tax needs. The Tax Department can address those unique needs in the most advantageous manner possible.
Beginning with the 2010 tax year the Tax Department has been listed as a qualified service provider by Workforce United.
In addition to preparing income tax returns the Tax Department offers consulting services which, allows clients to discuss issues, strategies, and the tax consequences of day trading.