Entity: Accounting Service For Securities Trading Gains And Losses – One Hour

If your entity actively trades securities you are stuck dealing with complex IRS cost-basis reporting rules including Section 1091 wash sale loss rules.

Price: $250.00


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March 25, 2019 notice: For trade accounting services purchased after March 31, you should expect to receive our work product after April 15. You should file 2018 tax extensions based on Form 1099-Bs and estimated trading gains and losses. See our blog Tax Extensions: 12 Tips To Save You Money and Traders Elect Section 475 For Massive Tax Savings.

If your entity actively trades equities and equity options and or securities in more than one account, unless you use proper software and or our professional service using that software on all your entity accounts, you will probably handle wash sales wrong and under-report or over-report your taxable income. In these cases, you can’t solely rely on 1099-B reporting because brokers use a different set of tax compliance rules than taxpayers in calculating and reporting wash sale losses. (Read Wash Sale Losses.)

How our service works

We download your entity's securities trades into professional software and generate Form 8949 (and or Form 4797) in a manner that is compliant with Section 1091 wash sale rules for taxpayers. We reconcile these tax forms with broker-issued 1099-Bs, which have different rules for calculating and reporting wash sales. We also prepare Form 6781 for Section 1256 contracts and prepare the necessary tax forms for reporting forex transactions. If your entity elected Section 475 MTM, we prepare Form 4797 with line by line reporting as required. You can give these tax forms to your tax preparer or our CPAs for our tax compliance service.

Administration Fee: In addition to hourly billings, we charge an administration fee of $75 per year, per entity vs. individual, for usage of TradeLog Pro software. We’ll waive our administration fee for clients with a retail license, which comes with the right of an accounting firm to do the accounting services using the program. If you don’t need to operate the software program on your own and want our help, the professional service with administration fee is a better deal.

Want a quote?

Email us your number of accounts (by taxpayer identification number), approximate number of transactions, and list your brokers. Tell us if you have cash or Section 475 mark-to-market (MTM) accounting and mention if you have complex transactions if you use the cash method (straddles, offsetting transactions, etc.)

Cost calculator

Our trade accounting service averages 2 to 3 hours per year.  The number of hours is contingent on the number of broker accounts, access to historical reporting, availability of trading transaction history reporting and tax statements provided by online brokers. Complications arise with inter-accounts transfers, non-US dollar transactions, and issues with commingled investment account with Section 475 MTM election.

We have a good idea of total cost after we spend the first-hour review your files and situation.