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Excerpt from http://greentradertax.com/trader-tax-center/tax-treatment/tax-treatment-etfs/ Precious metals ETFs Physically backed precious metals ETFs may not use the RIC structure either. Although they could use the PTP structure, they usually choose the publicly traded trust (PTT) structure...

http://greentradertax-traders-association1.rallycongress.com/17827/dear-congress-please-fix-tax-laws-active-traders/ If you trade financial instruments for a living, please sign our petition. There are problems with tax laws and IRS regulations for active traders including wash sale rules...

File 8886 on net forex ordinary loss over 50k. It's a simple filing and large penalties if you omit it.

In some firms, Class A members are allocated all losses and Class C prop traders are allocated income based on new high net profits when generated.

Correct, look to the Schedule K-1 for reporting guidance. It will show your opening capital account, income or loss for the year, distributions and ending capital account. Sounds like the firm treated your deposit as a contribution to your capital account rather than as a deposit treated as a...

You need to have cost basis in the partnership to deduct partnership losses allocated to you so see your capital account reported on the K-1. Deposits are not cost basis and those write offs are handled differently. Yes, Section 475 losses on Form 4797 Part II are ordinary business losses.

We only know one software that calculates wash sales correctly in accordance with IRS rules for taxpayers stated in Section 1091: wash sales based on substantially identical positions across all individual accounts including IRAs, including Roth IRAs. Broker 1099Bs calculate wash sales based on...

Commodities/futures ETFs Commodities/futures ETFsmay not use the RIC structure, so they are usually publicly traded partnerships (PTPs). Commodities/futures ETFs issue annual Schedule K-1s passing through their underlying Section 1256 tax treatment on Section 1256 transactions to investors, as...

As a partner of a proprietary trading firm receiving a Schedule K-1 for your share of partnership income, loss and expense, you report the items as stated. The prop trading firm qualifies for trader tax status and it elected Section 475 MTM at the firm level. You are not a retail trader...

Yes, only in the rare case you have no cost-basis adjustments including wash sale adjustments.

Right, simple check the box. The IRS wanted 1095s for reporting everything but people balked and they made that voluntary. See our 10/30/14 blog on Obamacare taxes.

An Individual 401(k) must be opened before year end, even without any contribution which is payable until the due date of your return including extensions. Conversely, you can open and fund a SEP IRA by the due date of the return including extensions. So if you didn't open the Individual 401(k)...

Botching the Section 475 MTM election is a problem. I don't follow you about your accountant checking a box on a Schedule K-1 claiming Section 475, that is not what's done. Were you electing for a trading business partnership or as a sole proprietor? The key thing is that the taxpayer making the...

Forming an entity taxed as an S-Corp can save active business traders significant taxes. With an S-Corp, business traders solidify trader tax status, maximize employee-benefit deductions (such as health insurance and retirement plan deductions) and gain flexibility with a Section 475 election...

I just posted a blog. Tax treatment for forex and deposit losses after SNB’s surprise policy change http://greentradertax.com/tax-treatment-for-forex-and-deposit-losses-after-snbs-surprise-policy-change/

Tax treatment for a lost deposit in an insolvent financial institution is covered under Section 165 losses. Basically, you need patience to wait for a court to rule it's a "sustained loss" after all recovery efforts and that loss write off can take over a year. We have content about Section...

@GreenTraderTax: House Budget Chair Price authored 2013 bill to prevent EU FTT in US. Price will stop ranking member Van Hollen US FTT. http://t.co/CDhLjPIX6a Wake up ET the battle has started in the US!

http://wapo.st/1AGbKtj House Democrats to introduce a financial transactions tax tomorrow. They're making a big play for juicy middle-class tax cuts financed by closing loopholes on the rich and a financial transactions tax. They're bringing out all the big guns with Pelosi, Van Hollen...

Not sure we agree here. We consider a SMLLC disregarded entity a "tax nothing" so a SMLLC disregarded entity 475 election is an individual election. An individual has one trading business with trader tax status, not two. Adam, I suggest a private conference call with you, my partner Darren...