Traders who qualify for trader tax status can deduct business expenses and may elect mark-to-market accounting, but the wash-sale rules still loom large.
A trader who rises to the level of a business may claim trader tax status and deduct trading-related expenses, unlike a casual investor.
Those who make a timely mark-to-market election under Section 475 treat gains and losses as ordinary and are no longer caught by the wash-sale rules on those positions.
Income you’ll report on: 1099-B.
Most people in this line of work leave money on the table. Here's what we make sure to capture:
If you earn as an independent contractor, yes — self-employment tax is 15.3% (Social Security and Medicare) on your net profit, on top of regular income tax. You deduct half of it, and every business deduction lowers what you owe. We handle the calculation on Schedule SE.
Common write-offs include trading platform and data feed subscriptions, market research and charting tools, a qualifying home office, computers and multi-monitor setups, plus a share of your phone and any home-office use. We go through your year line by line so nothing legitimate gets missed.
If you expect to owe $1,000 or more for the year, the IRS generally wants quarterly estimated payments to avoid an underpayment penalty. We calculate them so next April isn't a surprise.
Yes. Your income is taxable whether or not a client or platform sent a 1099. We report it correctly and offset it with every deduction you qualify for.
Tell us what you've got and we'll come back within one business day with the plan and the price · from a preparer who knows your line of work.
Tell us what you’ve got