Additional Information

Our trader tax consultations cover a wide variety of topics.

Additional Information

Tax Planning

Wise taxpayers should do tax planning before year-end. Certain moves can save you a fortune for next April 15. more


A primary reason for a trader entity is to establish a retirement plan and other tax-deductible and tax-deferred employee benefit plans (i.e., deducting health insurance premiums), which are not available for sole proprietor traders (who otherwise receive all trader tax status and MTM accounting benefits).

The new tax law also provides an opportunity for a 20% deduction on qualified business income (QBI) in a pass-through entity if your taxable income is under the threshold. Section 475 ordinary income is likely QBI, whereas, capital gains are not. Before you take the entity plunge, you should consult with Robert A. Green, CPA, directly. He wrote the book on trader entities. more

Proprietary Trading

Whether you are joining a firm, creating your own, or doing business with a proprietary trading firm, we have all the tax services you need: consultations, and preparation of your federal and state tax returns (for your proprietary trading firm and its members or your return if you are just a member).

Retirement Plans

Trading gains are not “earned income” — except for full members of futures exchanges, independent contractor prop traders and investment managers — and therefore you cannot set up a retirement plan account in connection with trading. You can form an S-corp or C-Corp management company, generate income in that entity, pay yourself compensation and then set up a retirement account. You need to decide what type of entity and retirement plan is best. If you trade for a living, you should have a retirement plan. Traders know the power of compound returns; retirement plans grow tax-free much faster than taxable accounts. Lots of traders also want to know if and how they can trade their retirement plan capital. Some need to borrow money from their retirement plans. There are plenty of pitfalls to watch out for too. We can consult with you on all these retirement plan issues as well. more

IRS Exams, Notices, and Collections

Unfortunately, many traders did not use our firm in prior years, and they made some errors on their tax return. Even without glaring mistakes, they may have red flags and significant losses in several years that attract IRS attention. As a result, they may have caused an exam.

IRS agents are getting more versed in trader tax status, and if you get audited, they will certainly question your status, your Schedule C losses, tax treatment, Section 475 ordinary losses, NOL carrybacks and more. (Read Dealing with the IRS and States for our reply to these attacks.)

Don’t panic if you get audited — in some cases; we can show you proven ways to stop the auditors in their tracks and close your case with no changes. We have done this for many traders. If you are a trader and the IRS is on your back for late filing, non-filing, penalties, collections, appeals or tax court, contact us for help. We may be able to fix your IRS problems and put their collections on immediate “hold” while we help resolve your issues. more

Purchase a consultation here

If you have any questions about our consulting services please contact us.