New Traders

New traders, you’ve come to the right place to learn about taxes, accounting, regulation and business matters.

The first order of business for new traders is your transition process. Perhaps you recently left a job or business, or you’re preparing to do so. Perhaps you are unsatisfied in retirement. Trading may or may not be right for you. Some new traders delve into it with success, while others test the waters first. Do what’s best for you and your family.

Tax strategies are a huge factor in a trading activity. The goal is to deduct all trading losses and expenses as ordinary business losses, and to reduce taxes on trading gains and portfolio income with lower tax rates, like the 60/40 futures tax rates. An entity often comes in handy too. It looks better to the IRS and unlocks additional tax-deduction breaks like retirement plans and health insurance premiums. Beware of one of the biggest mistakes for new traders: Falling for a multi-entity scheme offered from other trader tax sites and tax-free state incorporators. Look here before you leap!

We recognize that many new traders first take educational classes, and some teachers highly recommend a trading entity from the start. While that is a good idea for some, it’s not a good idea for others. Almost all the leading trading education companies recommend our site.

Our recommendations for new traders:

Read the content in our free Trader Tax Center. This area contains excerpts from Green’s 2014 Trader Tax Guide. Better yet, purchase and read that entire tax guide.

Pre-Business Education Expenses: One of the biggest challenges for new traders is how to handle their recent and current trading education expenses. Some tax firms — and notice they are not CPA firms — promise full tax deductions for education, no matter how old and how high the amount. They are very wrong. Watch our recent Webinar on "How Traders Deduct Education" dated Feb. 12, 2013. We cover this in depth in the above tax guide.

What’s next?

After reading and watching our content, we recommend a 30-minute phone consultation with Robert A. Green, CPA.

If an entity is a good idea for you — and it’s best to find out first from Robert Green in a consultation — you can purchase our low-cost entity formation service afterwards. Robert Green chooses the right entity for your family and he sets it up in a tax-efficient and low-cost manner. Our outside attorneys do all the legal documents and more.

It’s important to start your accounting correctly from the start of your trading activity.

For securities traders, we highly recommend TradeLog for GreenTraderTax. We’ve added the tax knowledge to this industry-leading program since 2000. It’s simple to download your transactions and the program does the work you need, including wash sales and much more. Our accountants can do this TradeLog work for you as well.

Futures and forex traders don’t have to use a program like TradeLog; they can rely on accounting and tax information provided by their brokers. Futures traders receive a Form 1099 at year-end showing their net taxable gain or loss. Summary reporting is used for forex traders too and most brokers offer good online reports. Securities traders are the ones who need line-by-line or trade-by-trade reporting; with lots of transactions, TradeLog is the answer.

Tax compliance services for traders is our core business.

Highlighted Recent Recordings:

*Entities & Employee-Benefit Plans
*Current Developments in Tax Law that Affect Traders
*Accounting for Traders
*The Section 1256 club is hard to get into: Futures on foreign exchanges often donít qualify
*Puerto Ricoís tax haven status
*Entities: A key update on trading entities and management companies
* 2013 Tax Filings For Traders & 2014 Tax Planning
*Forex Tax Treatment & Planning
*Trader Tax Law Update: Current Developments
*2014 Tax Planning & Will an Entity Help Lower Your Tax Bill?
*Audits of Performance Records

Trader Tax Center

Tax Newsletter & Calculators

Highlights (see the full archive):

Aug 19: Foreign partners in a U.S. trading partnership can be tax free Read More

Aug 13: IRS warns Section 475 traders Read More

June 20: Tax treatment for Nadex binary options Read More

June 19: IRS softens its stance for some taxpayers with undeclared offshore accounts Read More

June 12: IRA rollover rule changes Read More

June 6: Bitcoin is not reported on 2013 FBARs Read More

June 5: Tax deadlines in June: U.S. residents abroad and FBAR Read More

June 2: Tax treatment for foreign futures Read More

May 21: Bitcoin tax update: Can business traders apply Section 475 elections to bitcoin trades? Read More

May 13: Puerto Ricoís tax haven status is tailor made for investors, traders and investment managers Read More

May 6: Entities: A key update on trading entities and management companies Read More

Mar 25: IRS guidance on bitcoin transactions will chill its use Read More

Feb 27: Another trader tax court loss (Assaderaghi) Read More

Feb 1: Net investment tax details Read More

Dec 4: IRS final regulations for Net Investment Tax help traders. Read More

Dec 3: Bitcoin is a hot commodity, but is it taxed like commodities, assets, or currencies? Read More

Nov 15: Another non-business trader gets busted in tax court trying to cheat the IRS. Read More

Nov 6: Hedge fund investors depend on ďassuranceĒ from quality independent CPA firms. Read More

Oct 29: ObamaCare taxes are starting to affect traders. Read More

Aug 30: The Tax Court Was Right To Deny Endicott Trader Tax Status Read More

Aug 18: Common trader tax mistakes Read More

July 24: Learn the DOs and DONíTs of using IRAs and other retirement plans in trading activities and alternative investments Read More

GreenTrader blog archive, Forbes blog, Benzinga blog.


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