Tax Compliance (Preparation/Planning)

Traders have unique tax needs, and GNM offers them excellent value in our tax compliance services.

Green, Neuschwander & Manning, LLC (GNM) accepts new clients for its 2023 tax compliance service, including tax return preparation and planning.

We require first-year clients to be eligible to claim trader tax status (TTS), which was determined in a recent consultation with our CPAs. If you wish to become a new client, please email us at info@gnmtradertax.com.

Returning clients should check in with their assigned tax professional from last year.

Here’s an example of our tax compliance service:

Individual Tax Compliance (First-Year) – Partial Payment & Minimum Price.

GNM’s tax compliance service includes

Prepare your 2023 federal and state tax returns.

Assessment of trader tax status (TTS): If you qualify for TTS for any part of the year, we can add a Schedule C to deduct your trading business expenses, startup costs, and home-office expenses above the line from gross income. TTS does not require an election, whereas Section 475 MTM does.

In a tax return footnote, we explain trader tax law, how you qualify for TTS, tax elections like Sections 475 MTM, the tax treatment on financial products, and more. It’s essential to avoid IRS questions.

If you traded securities, there is complicated accounting for wash sale loss adjustments or Section 475 MTM accounting, including a Section 481(a) adjustment for the first year of the election.

Consider our trade accounting service in conjunction with our tax compliance service.

A timely filed 2023 Section 475 MTM election statement and Form 3115 (Change of Accounting Method) perfect the Section 475 election. (Preparing Form 3115 costs extra).

Tax treatment for traders can be confusing, and we get it right: taking advantage of losses where possible and Section 1256 60/40 capital gains rates. Traders can depart from broker 1099-Bs where entitled; we explain it in the tax return footnotes.

The home-office deduction is one of the most significant deductions for traders, and a trader needs to make special moves on the tax return to unlock the full deduction.

The 20% deduction on qualified business income: QBI includes 475 income net of TTS expenses, excluding capital gains and portfolio income.

If you have a pass-through trading entity, we maximize tax benefits between the individual and entity tax returns, including unreimbursed partnership expenses (UPE) and accountable plan reimbursements with S-Corps. We also focus on employee benefits, including health insurance and retirement plans with S-Corps. (Sign up separately for our entity tax compliance service; the tax return or extension deadline is March 15, 2024, for S-Corps and partnerships.)

Over 29 states have enacted SALT cap workaround strategies using partnerships and S-Corps. Make your necessary PTE payments to the state by March 15, 2024.

GNM has partnered with Protection Plus to provide all our tax clients complete access to their services when filing their tax returns. Click here for more information. 

After you purchase our tax compliance service, GNM’s administration team will email you to start the tax compliance process. See how our virtual communication process works efficiently.

Our partial payment is also a minimum price. Please expect a balance due to our fees when we complete the tax compliance engagement. Please read Price & Billing Policies for more information.

If you have any questions, please let us know at info@gnmtradertax.com.

Thank you for trusting our firm, GNM, to help you. 

Sincerely,
Darren L. Neuschwander, CPA
Adam W. Manning, CPA
Members, Green, Neuschwander & Manning, LLC