Tax Prep for Traders

[Edge]

I need to find someone new to help with my tax prep. My current guy was great when I just had a few houses and my brokerage statement was easy to read, but I don't think he's really in to the options trading that I do. I've stayed with him this long because I wanted to keep the local guy, but I need to move on.

I need someone that understands options and traders. Someone that can take this tree that my brokers clearing firm sends to me and can translate it into what I need to send to the IRS. Does anyone have any experience with tradersaccounting com or does anyone have a name that they can post or PM me?

 

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[randallg99]

Edge,
are the accounting rules different using options vs. stocks? Whether you're filing under trader status or not? ....

if the answer is "no" then I would suggest a local accounting firm and at the very least someone from your home state to properly comply with local/state tax reporting

 

[Edge]

Yeah, there are quite a few differences. Index options are handled differently then equity options and neither are reported to the IRS by your broker. The only thing reported by the brokers clearing firm to the IRS are instances where you were actually assigned the stock or underlying, so it is up to you to take care of all the mated trade stuff and it really turns into a big rats nest.

If I look at what is summarized as my total options activity, it says I made a LOT more than I did last year. It is time for me to get someone that really understands on my side, someone that knows how to break it up and present it properly. I haven't found that person locally yet. I'm willing to spend the money for one of these big name services you find on the web, but I haven't found favorable reviews for them either.

 

[randallg99]

would something like Ameritrade's Gainskeeper program work for you? when I report my 1099, I attach the report printed by Gainskeeper and it contains every single transaction made and it can be exported to excel so I can make notes, etc....

it's very annoying paying a jr. accountant to type all of that info back onto the schedule but I am told that's the way it's gotta be...

 

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[1320Trader]

GREEN TRADER TAX

you can probably find a lot more info on elitetrader.com/vb

 

[Edge]

GREEN TRADER TAX

you can probably find a lot more info on elitetrader.com/vb

Thanks 1320Trader, I've been running across favorable reviews of them and am leaning towards them.