MTM - Long & Short term trades in account - Opinions

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fishindamarket

i have both long and short term positions in my MTM account.
My tax accountant wants to classify everything in this account as MTM - even the long term positions.
This would classify all positions at the higher short term tax bracket instead of the 15% long term tax bracket on those positions.
It's easier for them to do this and not have to go through and individually label the long term positions / trades to seperate - that's my thinking on why they want to do this.

Does anyone have feedback / experiences doing this? Pros/Cons of doing it either way?
thanks!
 
fishindamarket said:
i have both long and short term positions in my MTM account.
My tax accountant wants to classify everything in this account as MTM - even the long term positions.
This would classify all positions at the higher short term tax bracket instead of the 15% long term tax bracket on those positions.
It's easier for them to do this and not have to go through and individually label the long term positions / trades to seperate - that's my thinking on why they want to do this.

Does anyone have feedback / experiences doing this? Pros/Cons of doing it either way?
thanks!
More...

What you should do is get a second opinion from another accountant. It would make sense to ask a licensed tax professional since, the IRS is someone you do not want problems with. Even if you have to pay that 2nd accountant a fee for his/her consultation, it would be worth it. Each person's tax situation is different so, probably, not the best thing to ask for people's tax experiences.
 
some assets can be classified as long term holds. I don’t know how you do this but it needs to be clear that they are truly long term.
 
fishindamarket said:
i have both long and short term positions in my MTM account.
My tax accountant wants to classify everything in this account as MTM - even the long term positions.
This would classify all positions at the higher short term tax bracket instead of the 15% long term tax bracket on those positions.
It's easier for them to do this and not have to go through and individually label the long term positions / trades to seperate - that's my thinking on why they want to do this.

Does anyone have feedback / experiences doing this? Pros/Cons of doing it either way?
thanks!
More...

You should definitely separate your positions to reap the lower tax bill.

If your tax person wants to combined your positions, it’ll be because they’re lazy or unknowing

or
how you currently file your taxes won’t allow you to really benefit from separating positions by age
 
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