Our trader tax consultations cover a wide variety of topics.
Trader tax benefits including qualification for trader tax status; Section 475 mark-to-market elections; forex tax treatment and elections; entity strategies; retirement plan strategy; dealing with the IRS or state on tax controversy and much more.
After you purchase a consultation, when scheduling your online appointment include the details in the “Comment” area.
Work with an expert
Don’t sell yourself short with a local CPA, tax attorney or retail tax storefronts, who are probably not experts in trader tax status, related tax rules, and strategies, complex tax treatment for forex, ETFs, options and more, and investment management. Save yourself a bundle in taxes by consulting directly with the recognized leading CPAs for traders and some of the best-known tax attorneys around.
Special issues for traders
If you like what you read and hear about our unique and highly valued ideas for tax savings for traders, then consider a consultation with Robert Green or Darren Neuschwander to deploy our strategies in the best manner for you.
Trader Tax Status
First and foremost, you need to qualify for trader tax status. If you are a “close call,” We can help you make this very important determination. After you read our content on trader tax status, you will see that it’s as much an art as a science for this crucial determination. Without trader tax status, you can’t use Section 475 mark to market accounting and you lose all the other trader tax benefits. An entity helps in form, but you still need to qualify for trader tax status in substance. Why not proceed on firm footing with America’s leading trader tax authority? You will sleep better at night. The IRS is raising the heat in tax exams for traders, so it’s important to get this right.
Section 475 MTM Elections
Is Section 475 mark to market accounting (“tax loss insurance”) right for you? There are many myths about the pluses and minuses. Even after you read and watch our content, you still may have trouble making the right decision on electing Section 475 MTM. For example, if you have a large capital loss carryover, your election decision is a gamble of sorts. If you elect MTM on securities and have trading gains, that’s ordinary income and you can’t offset it with your capital loss carryovers. That raises your taxes. On the other hand, if you lose more money trading, you will be thrilled to have ordinary loss treatment which can generate immediate tax refunds, rather than adding more fuel to your fire (of unutilized carryover capital losses). Perhaps one of our special entity strategies can do away with this Section 475 MTM election gamble, as entities give you a “do over” chance, even mid-year. It’s also tricky to segregate investment positions from Section 475 trading and not allow the IRS to move items from one bucket to the other at a significant disadvantage to you. The IRS now allows (free) revocation elections, too.
New Business Traders
Many of our consultations are with new traders who have questions on trader tax status and how to handle start-up expenses, pre-business education, seminars and new equipment and software costs. They are not sure which type of structure is best — sole proprietor, LLC, general partnership, S-Corp or C-Corp. Usually, traders only need one entity, but in some jurisdictions, like California and New York City, two entities are a better solution for high-income traders. Traders don’t know which tax elections they qualify for and which ones they should make. They want to utilize their retirement funds, to finance their trading business, but aren’t sure how without triggering early income and excise tax penalties. They also want to deduct health insurance premiums and retirement plan contributions on entity tax returns, since that is not possible for sole proprietor traders.
Green (or Neuschwander) starts most consultations by listening to your questions and concerns. Some clients email a list beforehand. Green then interviews you to fill in the necessary facts and circumstances. Green then answers all your questions, and he seeks to end each session with strategies on trader tax status, Section 475 mark to market accounting, entities, employee benefit plans, other tax elections and other issues. Any specific issues you raise, including proprietary trading, investment management, dealing with partners, international matters and sophisticated trader tax matters, will also be addressed.
Many traders purchase a consultation with Mr. Green to discuss entities before plowing forward with an entity formation plan. It’s wise to see if an entity is right for their needs, which type of entity is best and how to use it. If Green does not see a compelling reason to form an entity, he will advise against doing so.
Green covers lots of ground in little time, so a consultation is a great value! The vast majority of consultation customers upgrade to our tax compliance, entity formation, and other services. It’s a great way to start our relationship and work with our top strategist, Mr. Green, who will always keep an eye out for you and your account within our CPA firm.
We are different from our main competitors. One company tells every trader to form multiple entities (LLC and C-Corp) promising business deductions whether or not you qualify for trader tax status. That is incorrect and expensive. If you don’t qualify for trader tax status, you don’t need an entity. When you do, we keep it simple and low cost, with maximum possible tax benefits. We care about you and having a long-term relationship. (Read Entity Solutions for Traders.)
Green prepares a memo to file during the consultation and forwards it to the client and other GreenTraderTax pros who become involved during tax compliance and entity formation work. If needed, this information also may go to our tax attorney, who continues with more detailed tax research. Green includes his suggestions, recommendations and next steps.
Start at the top and stay on top! Robert Green is looking forward to working with you soon.
If you have any questions on any of our consultations, please contact us.