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: $300.00

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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, to use 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 the administration fee is a better deal.

Want a quote?

Please email us your number of accounts (by taxpayer identification number), the approximate number of transactions, and a list of 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. However, the number of hours is contingent on the number of broker accounts, access to historical reporting, trading transaction history reporting, and tax statements provided by online brokers. In addition, complications arise with inter-accounts transfers, non-US dollar transactions, and commingled investment accounts with Section 475 MTM election.

We have a good idea of the total cost after spending the first hour reviewing your files and situation.