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Brokerages are not US Income tax advsors. Further, the advertising by Brokerages is governed by the SEC, not the IRS. It would not necessarily be appropriate for a brokerage to discuss individuals tax "problems" as you call it. What you are calling a tax problem, other people might think...

The evidence is found in U.S. statutary law (TITLE 26--Internal Revenue Code) as follows, which your tax attorney can opine on how it might apply to your own situation: The UBTI provisions are found at §§511-514. The language of §§511(a)(2)(A) and 501(a) were not conformed to include...

Jack of All Trades - Master of None

The tax form itself does not actually identify if you owe self-employment taxes, per se. (though it implies if you do or not) The 1099-B only lists the sales, not the purchases, therefore you are responsible to provide the gains/loss computations. Since the firm knows the purchases you...

A K-1 is issued to an owner/investor in the entity. A 1099-MISC is issued to a subcontractor of the entity. A 1099-B is appropraite for the trading of securities for your own account. Some traders are issued a 1099-MISC showing the net income, which might be appropriate if they are...

Series 7 and Series 63 securities examinations are not much of a hassel :)

Most any CPA would be able to devise a plan for you. And a CPA (or EA or other tax pro) should be involved with the complexities that you described.

The trick is to have a pure-play entity to do the trading through, and that entity pays earned income to the owner for services rendered with regards the trading activities.

For something like what you've described some people might do a Partnership, much like an "investment club." Others might prefer a little more formality and will use a LLC instread. It might depend on what your compensation package is going to be. How much money is involved, asset...

For 2004 IB improved slightly, 2005 hopefully will see further improvement. You can cut and past the IB HTML page into Excel and run totals as necessary. IB also had a nice summary box on the page for 2004 showing the varaious totals needed to reconcile your trades. The totals can then be...

A LLC that keeps strict separation of LLC activity from personal matters would be a good way to start. Then having a CPA firm audit you. If you can afford it, use someone like Arthur F. Bell, Jr. & Associates who is a leader in that sort of thing.

Wow, 2,000 pages with say 50 lines per page if you used large type is 100,000+ sells per year! I can see why you like your method. I did not mean to suggest whether reporting details or suppressing details is "better" one way or the other. But people should be not be blindly unaware that the...

Series 7 has nothing at all to do with trader status or the separate mark-to-market. I'd suggest that there are far, far more people with a Series 7 who do not have trader status, than the other way around. If you do want the "insurance" of having M2M for 2005 and/or you have decided that...

You are lucky that you had good and TIMELY advice back then. Otherwise you were facing a financial disaster! Far too many people have not been so lucky as you were to have the right advice at the right time in this area. My consultations in recent years with litigators and taxpayers in many...

It is not clear what happens to a valid securities trader M2M election when a trader in securities ceases to trade "temporarily" And it is even muddier what happens when the halt is in securities trading but commodities trading goes on. These issues will eventually be resolved (as are many...

To clarify - the "built-in" carryback provision for Sec 1256 losses is only allowed against 1256 gains. If you HAD a valid Sec 475(f)(1) M2M election for securities trading (though I think you are saying you are not a securities trader and therefore perhaps you do not have a valid M2M...

kooltrader, It is not simply a matter putting a number on line #13 vs. line #12. The values on these lines tie into amounts on Sch C and Sch D, which in turn must be prepared correctly and tie back to their source documents. If you are a bona fide "trader" for IRS purposes then there are...

If you reported your trading net gain on a sch C, then you did not file your "profit as gain capital." "Capital gain" does not go on a Sch C. If you filed as a dealer, then you probably filed the sch C as required, and you'd owe the S/E tax. Assuming you are not a dealer, then your return...

It is a fact that if you do not qualify for trader status but instead are investor status, then you do not use Sec 475 M2M, and therefore your net loss is generally maxed out at $3,000 for the year.

I agree. The trader's M2M election is automatic, they do not "accept it" or "reject it" per se. That's why it is imperitive to use certified mail return receipt requested to support your properly prepared and timely made election statement. Even if you fail to correctly format the election...