Recent content by Robert A. Green

Many cryptocurrency investors are inappropriately deferring capital gains taxes when they exchange one cryptocurrency for another. An example of this practice: exchanging Bitcoin for Ethereum through a cryptocurrency exchange and using IRC Section 1031 “like-kind” exchanges. But if you were to...

Even if you aren't eligible for trader tax status, there are two bullet points in the petition that help investors. • Section 1256 MTM: Futures and other Section 1256 contracts are subject to MTM reporting with lower 60/40 tax rates. Section 1256 does not require TTS or an election; all...

Please retweet this message to the Big Six tax writers.

We need more signatures, otherwise, traders may come up short in tax reform. I can't deliver the petition to the Big Six tax writers until we get more signatures. It just takes a few minutes of your time. Big Six Tax Writers: Traders Need Fair Tax Reform...

Calling all traders! Tax reform is on the horizon, and we need to make sure our lawmakers are aware of our unique tax needs. Traders stand to lose many existing tax breaks and exclusion from a lower tax rate on business income. We lack trade associations or industry groups that advocate for...

If you report a capital gain from a constructive sale on an appreciated financial position for a short sale against the box, your Form 8949 will not reconcile with the broker 1099-B. So be it: There are many other reasons it won't reconcile like wash sale losses on substantially identical...

Traders are on their own when it comes to tax compliance for short sales. Brokers don’t report constructive sales on appreciated financial positions on 1099-Bs, and many miscategorize stock borrowing fees as interest expenses. Forbes blog posts: IRS Short Selling Rules Can Be A Taxing Matter...

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Traders have unique tax issues on state and local income tax returns for business entities and individuals. Moreover, state and local tax regimes vary significantly. The preferred business entity for a trader is an S-Corp pass-through entity, which is free of entity-level federal taxation. Some...

I just published a blog post on our Website GreenTraderTax: Tax Treatment For Volatility Financial Products. Take a look and post comments and questions, thanks.

By Robert A. Green, CPA Proprietary traders are significantly different from retail traders. Proprietary traders don’t trade their capital. They trade the firm’s capital, usually accessed from a sub-trading account. A prop trader becomes associated with a prop-trading firm either as an...