These Tax Errors Will Cost Professional Traders Dearly
Most active traders make serious errors on income tax returns.
In our 81-minute video, trader tax expert Robert A. Green, CPA explains the below-listed errors and how to avoid them. We provide a timestamp and an orange header for each chapter.
(00:00:00) Opening remarks.
(00:02:03) Mistakenly believing you can rely on securities Form 1099-B.
(00:06:57) Messing up Form 8949 cost-basis reporting.
(00:15:38) Overlooking reporting of rebate income.
(00:18:27) Mishandling trader tax status.
(00:23:25) Errors in preparing Schedule C.
(00:31:23) Not including a note raises a red flag.
(00:36:00) Overlooking or messing up a Section 475 election.
(00:45:09) Messing up Form 4797 and overlooking a Section 481(a) adjustment.
(00:49:44) Commingling Section 475 trades with investment positions.
(00:52:31) Overlooking or messing up capital loss carryovers.
(00:56:35) Overlooking the election to carry back a Section 1256 loss.
(00:58:14) Using the wrong tax treatment on various financial instruments.
(01:01:45) Mishandling foreign transactions.
(01:05:45) Errors with home office deductions.
(01:07:50) Making mistakes on education expenses.
(01:10:16) Paying self-employment tax when not owed.
(01:12:02) Deducting employee benefit plans when not allowed.
(01:13:34) Taking an early withdrawal from an IRA may cost you dearly.
(01:15:38) Overlooking or messing up Obamacare taxes.
(01:18:51) Closing remarks.