Tax Compliance (Preparation/Planning)

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

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 2025 federal and state tax returns. If you sign up by early December 2025, you can plan your year-end tax return with your assigned CPA.

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 with the IRS, whereas Section 475 MTM does.

In a tax return footnote, we explain the tax law for traders, how you qualify for TTS, tax elections such as Section 475 MTM, the tax treatment of 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.

Our trade accounting service is only available with our tax compliance service.

A timely filed 2025 Section 475 MTM election statement due by April 15, 2025, and Form 3115 (Change of Accounting Method) to perfect the Section 475 election. (Preparing Form 3115 costs extra).

Tax treatment for traders can be confusing, but we get it right: We take advantage of losses and Section 1256 60/40 capital gains rates (up to 12% less than ordinary rates). Traders can also depart from broker 1099-Bs where entitled; we explain this in the tax return footnotes.

The home-office deduction is one of the most significant deductions for traders, and they must take special steps on their tax returns to claim it fully.

The 20% deduction on qualified business income: QBI includes Section 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 qualified for TTS. The S-corp requires year-end planning to execute payroll, including officers’ salaries, health insurance reimbursements, and other reimbursed employee business expenses. Please sign up for our entity tax compliance service separately. The 2025 tax return or extension deadline for S-Corps and partnerships is March 15, 2026.

Approximately 39 states have enacted PTET/SALT cap workaround strategies using partnerships and S-Corps. You must make your necessary PTE payments to the state by March 15, 2026. The rules vary by state. The PTE winds up as business expenses on your tax return.

You can also purchase this service for 2025 tax returns eligible for federal disaster relief extensions. Also, consider this preparation service for late-year original or amended tax returns.

GNM has partnered with Protection Plus to provide all our tax clients with 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 for our fees upon completion of 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