The Tax Guide for Traders

Active traders and investors have special needs to consider when it comes to taxes. A wrong decision on trader status, missing an extension for mark-to-market, or allocating net operating losses to the wrong year can end up costing a trader thousands of dollars and headaches with the IRS. A trader wading into the thicket of trader tax law without guidance is more than likely to regret it. Up to now, this market niche has been exploited with any degree of success by only one person: Ted Tesser. While Tesser’s guides have done well in the past, many of his methods and strategies are either outdated or outright illegal. Sales of Tesser’s guides have fallen in the last few years as his reputation has waned, but no book has come out to fill this vacumn. The Tax Guide to Traders from tax expert Robert Green fills this niche nicely, supplying active traders with a complete guide to all the major tax issues facing them. The writing is accessible and very readable (Jeff Ponczak of Active Trader magazine will edit the manuscript before submission). It is not dull accounting type reading, but rather very hands-on, practical material that covers issues traders face every day.
The Tax Guide for Traders discusses every key aspect of the tax situation as traders face them. Topics covered include: How to set up various trading businesses depending on individual requirements: sole proprietor traders, active investors, proprietary traders, hedge fund traders, entity traders, part-time traders; Key differences between state tax law and federal law (including information on the recently passed tax bill); Trader tax status, year-end tax planning, extensions, and filing strategies; Examples of specific tax forms for specific types of traders; How to account for gains and losses with thousands of trades; The importance of “mark-to-market”; What to do in case of an IRS audit; The difference in tax treatment for commodities, securities, and currencies; Deductions, self-employment taxes, expenses, and retirement plans; The author advocates keeping tax issues as simple as possible. He is an experienced tax expert with insights into how the IRS operates (red flags, important case law, etc.) and offers excellent advice on how to avoid trouble before it starts.

Author Biography

Robert A. Green, C.P.A. is the CEO of GreenTraderTax.com, which specializes in tax information and services for traders, investors, and the financial industry.