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Here's what it says on page 68 of IRS Publication 550: If you made the section 475(f) mark-to-market election, you should report all gains and losses from trading as ordinary gains and losses in Part II of Form 4797, instead of as capital gains and losses on Form 8949 and Schedule D (Form 1040...

Recording calls in the USA can be tricky, because each state has different laws. Some state laws allow you to record your own calls without informing the other party. But in other states, it is illegal unless you inform the other party. And when you place a call to a customer service center...

I don't understand your question. When you say "accomplish this," are you referring to the case that I filed against Spotify? Or something else? And what exactly do you mean when you say "where you are at?" I'm in the midwestern USA. Why does my location matter? BMK

There is no simple answer to that question. Here's the relevant text from IRS Publication 550: Self-employment tax. Gains and losses from selling securities or commodities as a trader are not subject to self-employment tax. This is true whether the mark-to-market election is made or not. For...

Dude... if you don't understand the difference between a broker and an exchange, then you really don't understand how the markets work. You seem to be confused by so-called crypto "exchanges." Crypto is a completely different world, with little or no regulatory oversight, and little or no...

On the surface, they appear to be a legitimate company based in California... By legitimate, I mean that they appear to be a properly organized California corporation that is probably set up to function as a custodian of IRAs. Whether their crypto platform is safe and secure, and whether you...

The conditions you have listed are a set of guidelines. They may flow from case law, i.e., disputed audit cases where the federal courts had to decide whether someone was a trader. Or they may come from IRS procedural manuals that are used by auditors. But they are still just guidelines. You...

My experience in the last six months or so trying to call Schwab has been very poor. Long hold times, and on one call I was unable to choose an option to speak with a live rep until going through an extremely long message about activating "Voice ID," and there did not seem to a way to opt out of...

When I place an order at Schwab to buy or sell bonds, the order entry screen shows me the total price, with a breakdown. It shows what portion is interest and what portion is premium (or discount). I've attached a couple screenshots...

The amount of accrued interest should remain constant throughout the day. It is determined by a straightforward calculation that is based on the number of days to maturity. The price of the bond itself will fluctuate during the day... BMK

@Sig What I recommended is that the taxpayer should identify how much of the sales proceeds are accrued interest, and break out that portion and report it as interest. The remaining amount of the proceeds is the true price of the bond, whether it is sold at a premium or at a discount. If you...

Okay, so I read your original post again, and I see that you are using Form 4797 instead of Form 8949. That's okay, and it does not change my answer. You report the sale of the bonds on Form 4797, and you adjust the basis upward by the amount of the accrued interest. BMK

I am a professional tax advisor. But I am semi-retired, and trading and bonds are not my area of expertise. But I understand what you did, and I think I can help you resolve this. Your trade confirmations and account history should allow you to determine exactly how much of the sales proceeds...

I think I can help you solve this, but I need to make sure I understand the facts. You sold T-Bills at a discount before maturity. Part of the sales price is accrued interest. So, for example, you sold $10,000 face value of T-bills, and you received $9,750. Of that $9,750, $50 is accrued...

Are you talking about accrued interest that is built into the proceeds of the sale, or interest payments that you received before the sale? Interest that you received before the sale will still be reported on Form 1099-INT... And I think the accrued interest will also be reported on Form...

I don't think there's any logic to it. It's a fantasy associated with the idea that the US Treasury "never should have gone off the gold standard," i.e., that US currency should, as a matter of law or economic policy, be backed by physical gold reserves. When you couple that idea with the...

Cryptocurrency futures could be cash settled, like S&P futures, or they could be settled with delivery of the cryptocurrency. No, you are not delivering a physical asset, but you are delivering the underlying, instead of settling in cash. I don't trade crypto at all. And I don't even know...

I'm not sure you are using these terms in the way they are commonly understood... A bear call spread is when you sell the 45 call and buy the 50 call. That generates a credit. But it's a bearish position, which means that you make money if the stock goes down. But you said you think the stock...

We are thinking about moving our account to Fidelity. We do position/swing trading in equity and index options. We are US citizens. Would like to hear from anyone who is currently at Fidelity, what you like and do not like, or anyone who left Fidelity, e.g., why you left. BMK

If you can find a US resident who is willing to be a member of the LLC, with a very small ownership percentage, and minimal compensation, then you may not need the offshore entity. You may be able to find an accountant who would be willing to take on this role, particularly if you are...