M2M Traders + Tax Question

L

listedguru

This question is for M2M traders (stocks) who trade retail. Do you list every trade on form 4797 or just a summary line with a total of your buys and sells? I've heard your supposed to list every trade but some say a summary line will suffice.

Thoughts?

-Guru
 
I'd like to piggy back a question here...How do you tell that you should declare M2M on your taxes? I st6arted trading last year, started with 25K ended thear with 100K took some hits along the way. This year I think I may continue and hope to be more successful, wondering if the advantage of M2M is truly worth it.

Just looking ot get iudeas form people who have gone through it; of course I''ll do my own DD and get a tax acct. advice once I get to that point.
 
It seems (from what I have read so far) that the best alternative for a day trader is creating an entit, like LLC. Better tax advantage, can contribute more to retirement and less likely to be audited?


IS it true that doing daytrading as a sole propietor leads to greater risk of audit and that as a sole proprietor or even just as an indivudual, that decalring "day Trader" status is tougher per IRS rules? (that IRS would expect you to belong to a traders office or something)
 
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