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New York Time
Free money (guaranteed until 12/6/2012):
for Traders' pre-2007 monitors
Day Trading buying power limited
with ETF's effective 12/1/09 - p. 4
does not fully understand the
business model for traders - p.67
Internet taxes are almost here
IRS rules sloppy
IRS now auditing
as part of a tax
IRS Notice 2008-1 re: S-corp. owners (PDF)
IRS is not
IRS sued for civil rights violations
Officials agree -
Security statement online
IRS Refund information:
Where's My Refund?
Where's my unclaimed
Historical Documents relating
to Alphonse (Al) Capone
trade matching for
Wash Sale and
Mark-to-Market reports included.
Note: Effective January 2011
TD Ameritrade retirement accounts
are allowed to be designated as
margin accounts without the need
to form a separate LLC to hold the
title to the account.
Other brokers offering
GainsKeeper (some charge a fee):
ChoiceTrade, as of 3/1/2005
IB Interactive Brokers, as of 3/22/2005
MB Trading, as of 3/22/2005
OptionsXpress, as of 2/21/2006
Zecco Trading , as of 6/4/2007
Firstrade, as of 2/5/2009
trade matching rules starting in 2011
Zero commission trading:
Zecco Trading - 10/month
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||Copyright© 2014 Colin M. Cody, CPA
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Trading and U.S. tax policy quotes...
Latest figures from the IRS, for tax year 2012.
Top 1% of taxpayers reported at least $434,682 of AGI and they paid
38.1% of all federal income taxes
Top 5% of taxpayers reported at least $175,817 of AGI and they paid
58.9% of all federal income taxes
Top 10% of taxpayers reported at least $125,195 of AGI and they paid
70.2% of all federal income taxes
The bottom 50% of taxpayers paid 2.8% of all federal income taxes
- Kiplinger's Tax Letter
Looking for tax
trading is fast... exciting...
profitable... challenging... and tax deductible!
When you tally up your results each year - do you see the
capital gain tax taking away too much from your hard won trading profits?
As an active trader do
you find that you have too little time at the end of the day
to do the necessary tax planning to avoid paying excessive income taxes?
What is the real story behind all the talk about the tax benefits from
choosing trader status and electing mark to market?
When is a CPA firm needed?
Serving Traders for over
We'd Like to hear from you
Here at TraderStatus.com™ we will bring together in one place the
information necessary to help you survive unnecessarily high short-term
capital gain taxes, self-employment taxes and state and federal income
taxes. To accomplish this, often a separate trading entity is the
answer, but just as often we avoid it as not being cost effective in a
Many traders do
not yet even realize that they are paying far too much to
the Federal Government. Existing, proven legal
procedures, which in many cases can significantly reduce
taxes each and every year, are available to anyone
qualified to elect to use them.
As we all
eventually learn, those low capital gain tax rates of
15% or lower are not available for the daytrader's lightning fast trading profits. Rather,
an individual daytrader's gains (or losses) are
subject to the higher ordinary income tax rates!
securities traders may incur substantial costs with
on-line fees, commissions, real-time data-feeds, computer
equipment and so on. The Internal Revenue Service, on
their own, do not treat most taxpayers very fairly when
it comes to deducting these expenses. Leaving it up to
the IRS publications and instructions, at best, a
taxpayer must first qualify to itemize his deductions on
Schedule A - making those deductions subject to a 2% of
Adjusted Gross Income (AGI) reduction and for some high-income taxpayers even an additional 3% of AGI reduction.
Please take the time to read and understand the information found on
our web site and also on the Discussion Board
as it can be very helpful to you when preparing your taxes and when
planning your tax strategies. Every month we hear from taxpayers
who found this web site too late or after they already paid someone
for a download that contained nothing more than the basic information
here available to you for free. Taxpayers who were ill-advised by normally very competent CPAs and other tax practitioners,
but for whom the tricks and traps
of Trader Status were unknown to them.
A good CPA does not need to know everything, he only needs to know
where to look it up when a problem arises, or when he's doing your tax
planning. Unfortunately the hard facts are that, when it comes
to traders in securities and traders in commodities, many tax advisors have
no clue that there even is a Trader Status issue to look up, let alone
having the practical hands-on experience necessary to be aware of the tricks and traps
to be found!
Proposed IRS Regulation 1.1411-5 targets gains from securities
traders, futures traders and forex traders
for imposition of the 3.8% surtax.
Odds of being audited:
IRC §1411 - November 30, 2012
1:8 taxpayer earning over $1MM were audited in the past year.
1:25 are the odds for individuals earning greater than $200,000.
earning less than $200,000. 1.6MM tax returns were audited, out of
141MM form 1040 returns filed. 8 out of every 10 audits resulted
in additional taxes being assessed. Corporations: 1:100 odds for
those with assets under $10MM.
derived from IRS announcement, January 5, 2012
For 2014 as has been the case starting with 2011, taxpayers with any financial account maintained by a foreign
financial institution or any securities issued by someone that is not a
U.S. person may be required to file IRS Form 8938 along with their
regular income tax forms. Taxpayers are subject to a $10,000 late filing
penalty and the burden of compliance for some European
institutions is too expensive and will result in
closing accounts held by U.S. citizens.
derived from IRS announcements, January 2012
Link to this site or
right-click to save on your desktop
World's BEST File Management Tool
Tax Advice - TraderStatus.com
Tax Advice -
Help is out there for those qualifying taxpayers whom are
active enough to file with the IRS as a TraderStatus™Taxpayer.
Under Trader Status an electing daytrader may deduct
all of his ordinary and necessary expenses. And
for taxpayers filing under Trader Status they do not itemize those expenses on Schedule A
(but yes, they may
even take the "standard deduction" in addition
to all their "trader status" expense
deductions). Since a trader does not "itemize" daytrading expenses these are not subject to the 2%
limitation, the 3% limitation, or many of several other restrictions the IRS places on the average investor!
Want to learn more about
using TraderStatus on your tax return?
to the right place!
Come inside and look around where you'll find:
A basic overview accurately
describing the law pertaining to Traders, Investors and
Dealers and the Mark-to-Market election.
Order form to receive additional more detailed TraderStatus
information which can be invaluable when doing your own tax return, or for
providing the information necessary to defend yourself during an Internal Revenue Service Tax
Educational (and therefore tax deductible) Trader Books and Audio
Stock trading spreadsheet for manually keeping track of your trading
on a day-to-day basis.
Instructions to retain Professional CPA support for a personal
one-on-one telephone & email consultation to discuss your own unique tax
Retainer payment form for: Tax Return Preparation;
Mark-to-Market election preparation; Correcting prior errors made when
traders fail to file the required IRS elections properly & timely;
Using the correct forms, and
applying the current appropriate tax favored theories as they apply to you
on your own tax return; or for Representing you in front of the
IRS if you're being examined under field audit or mail inquiry.
in tax counseling and tax
planning strategies is available starting on our order page,
service engagement. Techniques as sophisticated as you need them
to be will be custom designed for securities trader and commodities trader clients.
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December 20, 2014
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