Five Ways To Deduct Losses In Financial Markets

24 Sep

Sep 24, 2015 at 1:00 pm EST

Join Managing Member Robert A. Green, CPA, to review his recent blog post Five Ways To Deduct Losses In Financial Markets. Mr. Green prepared a full tax return example file with many of the losses listed below, and he walks you through the nuances.

Five ways to maximize losses on tax returns

1. Elect Section 475 for unlimited ordinary losses vs. capital loss limitations on trading losses. There are many nuances and misconceptions about Section 475.

2. Net operating losses (NOLs) are comprised of Section 475 losses and trading business expenses. NOLs are carried back two tax years and/or forward 20 years, generating powerful tax refunds.

3. Wash-sale losses often cause phantom taxable income and tax liability. Learn how to avoid wash-sale loss problems.

4. Section 1256 loss carry back election. This is the only type of capital loss that can be carried back.

5. Forex losses are ordinary by default, and they offset wages and other income without limitation.

Mr. Green will also discuss losses in retirement plans.


Star, I wanted to take a moment to say "Thank You" for staying on top of my filing and also working hard to complete my financials in time ..... Additionally, I greatly appreciate you sending me the links for the expenses - it provided a much clearer picture of how I should be categorizing these expenses going forward. I hope that I get to continue to work with you and that this is not just a one-time deal. I really want someone who takes the interest in my business that you have taken - demonstrated by your follow up emails and phone call today. Anyway, just wanted to let you know that your work is greatly appreciated.