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Hi Adam, I'm not sure what you mean here, but thanks for your contributions to the elite trader thread. A taxpayer elects Section 475 MTM accounting on all their trading business. Of course it does not apply to duly segregated investments. They can elect and have a single-member LLC disregarded...

Caution the rules for segregation of investments from business trading positions with 475 are nuanced and severe if you don't follow them well. Read our blog post IRS warns 475 traders http://www.greentradertax.com/irs-warns-section-475-traders/ A taxpayer does not elect 475 on an account per...

See how to qualify for trader tax status on our website here http://www.greentradertax.com/trader-tax-center/trader-tax-status/how-to-qualify/. Follow our golden rules and watch our related webinar recording. If you qualify for all or part of the year 2014 you can file a schedule C with trading...

Prop trading firms who skip the Section 475 MTM election have tax problems potentially causing inequities for their LLC member traders over wash sale rules. Here's an example. Trader 5 takes a loss and Trader 6 buys back the position within 30 days triggering a wash sale loss adjustment...

We answer these questions on our blog http://www.greentradertax.com/tax-treatment-for-nadex-binary-options/

For sure, UBI issues affect Roth IRAs too. If a Roth IRA carries on a business activity it will have UBI and owe UBIT. That would be a really bad move.

According to Form 990-T instructions http://www.irs.gov/instructions/i990t/ch01.html#d0e78 a Roth IRA is listed under "Who Must File" - Excerpt Fiduciaries for the following trusts that have $1,000 or more of unrelated trade or business gross income: 1. Individual retirement accounts (IRAs)...

Retirement plan investments in publicly traded partnerships generate tax bills Most Master Limited Partnerships (MLPs) conduct business activities including energy, pipelines and natural resources. When retirement plans conduct or invest in a business activity, they must file separate tax...

Trading gains are not self-employment income so there's no SE tax. That does not change with trader tax status, section 475, or an entity. One exception: full members of a futures exchange trading futures have self-employment income.

You can claim trader tax status (TTS) for 2014 if you qualify - meet our Golden Rules - and there is no election required. Section 475 MTM ordinary gain or loss treatment - which exempts a trader from wash sales and capital loss limitations on business trades - must be elected on time. For...

The Patient Protection and Affordable Care Act (also known as Obamacare) enacted in 2012 has taken several years to implement and phase in. But now that the Obamacare 2014 individual health insurance mandate is in effect, many taxpayers will face confusion over tax penalties, exemptions, premium...

Basically correct, but technically it's a bit different. PR taxes PR-source income and the U.S. taxes non-PR source income - the two systems work side by side under Section 933. If you become a bona-fide resident of PR, all trading capital gains afterwards are PR-source income. PR tax incentive...

If you hold onto your legal residency - U.S. citizenship or green card - during those 10 years as a U.S. resident abroad, you probably face the regular expatriation tax rules (Section 877A). I just looked at those rules and clicked Find "10 years" and only see this exception. (g)Definitions...

Read our page International Tax Matters. http://www.greentradertax.com/trader-tax-center/international-tax-matters/. Excerpts: U.S. residents living abroad U.S. tax residents are liable for federal tax on worldwide income whether they live in the U.S. or a foreign country. The U.S. is not...

Two issues. Only a few foreign futures contracts qualify for lower Section 1256 60/40 tax rates. They obtained a CFTC no action letter and IRS revenue ruling granting 1256 treatment. We covered this on our blog http://www.greentradertax.com/tax-treatment-for-foreign-futures/. If 1256 applies...

Yes, you got it right. With Section 475 MTM and trader tax status, you get unlimited business loss treatment. If you have wage income of 80k and lose 50k trading securities with 475, your gross income is 30k. You aren't stuck with the puny $3,000 capital loss limitation which would mean gross...

Tradelog remains the best solution on the market for securities traders. It's the only solution that handles taxpayer compliance fully and properly. See http://www.greentradertax.com/trader-tax-center/accounting-solutions/ Excerpt: Many traders and their tax preparers cut corners on trade...

Classic problem. The IRS sends jeopardy assessments - made up amounts - for securities 1099-Bs as they can't be sure a taxpayer has capital gains or losses. With cost-basis reporting they have a clue, but they are still not certain. The jeopardy assessment is intended to compel a taxpayer to...

The biggest tax benefit of Section 475 MTM is "tax loss insurance" - ordinary business loss treatment and avoiding capital loss limitations and wash sale rules on that business trading account. Most day traders don't have open positions at year end so they aren't focused on marking positions to...

Read my blog about New Yorkers trying to avoid NYS/C taxes with Florida homes. It's not easy. http://www.greentradertax.com/bill-de-blasios-tax-the-rich-plan/