How easy is it to become a daytrader and allow Mark to market transactions, I'm sure you have to show legit reasoning behind a daytrader type status title
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RE: CPA for NYC day trader
- Thread starter tradere12
- Start date
How easy is it to become a daytrader and allow Mark to market transactions, I'm sure you have to show legit reasoning behind a daytrader type status title
What special knowledge does day trading require of a CPA?
in accounting a lot of the loopholes that are not explicitly stated.
knowing how courts interpret ambiguity in written rules.
Finally, understanding the issues a trader might have and having already done that research.
Real world example: my personal accountants don’t understand how trader elections work. They had to learn about it. I had to guide them around carrybacks on 1256 losses. Once they understood it they could do the leg work to figure out the technicalities and getting back prior year taxes.
I've used Schultz & Chez in Chicago many times, probably one of the best around for traders, if not the best. I think they used to specialize in tax accounting for the trading industry, and no doubt it's still one of their specialties. No reason you have to live there to use them.
Day trading accounting is very simple, not different from other types of trading. Wash sales may pose a challenge near the end and beginning of the year, if you trade many different products and each has wash sales. If you only trade one or a few stocks, for example it’s pretty straightforward.
This has been discussed previously on this forum. You just pay a little attention at the end of November and/or in January. Let’s say you have a loss on stock A at the end of November you can avoid wash sales by not trading stock A and waiting for 31 days until next January. Or if you have a loss by the end of December don’t trade it again until next February. If you have multiple losses from different stocks you need to note each of them and use the same logic/process.
From my experience Schwab is pretty good with wash sales on 1099s.
This has been discussed previously on this forum. You just pay a little attention at the end of November and/or in January. Let’s say you have a loss on stock A at the end of November you can avoid wash sales by not trading stock A and waiting for 31 days until next January. Or if you have a loss by the end of December don’t trade it again until next February. If you have multiple losses from different stocks you need to note each of them and use the same logic/process.
From my experience Schwab is pretty good with wash sales on 1099s.
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