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Regular CPA versus CPA for traders
- Thread starter Toonces
- Start date
Quote from Toonces:
The reason I bring all of this up is this...let's say you have a CPA that you have worked with in the past in a different business, and you have full confidence in him...then you start trading, go to someone else you will probably never meet face to face, unless you happen to be close to them. They seem to have a good reputation, but that's based on people who post in chat rooms, again whom you will never meet.
All things being equal, I'd prefer to work with someone I have worked with in the past. But are all things equal? I'm trying to imagine specifically what a "traders' CPA" would catch (deductions, for example) that a typical CPA would miss?
I mean, it's not like a good CPA won't know about marked-to-market handling of trades, home office deduction, etc. Maybe my taxes aren't as complicated as some of yours. I don't trade options, for example, just stocks.
toon - why are you unable to meet this trader CPA in person? If they are not local, hop in a plane and off you go. You can do this yearly or until you are comfortable. And a good CPA will know that this trip is deductible.
Quote from Surdo:
Some people just don' get it!
el surdo
Don't get what?
Seriously, I've used a trading CPA for 7 years now, and I'm just wondering if a regular CPA could do the same exact job.
If you are so knowledgeable, just give me an example of how you can hurt yourself using a reular (highly qualified) CPA.
I really think it depends on your situation and how well read on the tax code you are. For me, I use a regular CPA, but I read and studied the tax code as a layman for the last 5-7 years. Am I am an expert, no. I sometimes educate me tax lady. So far it has been fine. I get aggressive in certain areas of tax code and very conservative in others.
Until we change to Flax Tax, we are all well advised to learn about the tax code in some form or another. For those of us that make a ton of money trading hire a Robert Brown or daytradertax.com to do everything.
It's my money, I worked hard for it, and I am certainly not going to give the IRS anymore than I have to.
Until we change to Flax Tax, we are all well advised to learn about the tax code in some form or another. For those of us that make a ton of money trading hire a Robert Brown or daytradertax.com to do everything.
It's my money, I worked hard for it, and I am certainly not going to give the IRS anymore than I have to.
Quote from Toonces:
If you are so knowledgeable, just give me an example of how you can hurt yourself using a regular (highly qualified) CPA.
Toon - although this is not directed to me, I think your response left your comments wide open.
How can you get hurt if you are a professional trader using a 'highly qualified' CPA? Assuming this CPA does not deal with traders (odds are you would be the only one), I hope you see the potential issues there...
Back to the doctor analogy - we all know that brain surgeons are incredibly smart and highly qualified to operate; however if it's your back that is hurting, I might want to see a back specialist. Why? B/c that's all the guy does - is work on backs.
Having CPA after a name is just the start. Taxes and planning is such a diverse field that to just find a guy you like that has CPA after his name to do your trading taxes can be a huge mistake. The reason being that most CPA's do not have a clue how to handle traders taxes. Most deal with the buy and hold guy that might buy or sell a few times a year at most.
And if you do not believe me, call up some local CPA's and ask how many of their clients are active stock/futures/etc traders. I've met with CPA's that had no idea futures are taxed at 60/40.
There may be some 'regular' CPA's out there that can do your taxes, but that does not equate with the taxes being done in your best interest.