Option Trading Tips - Trading & TAX
Did you know that the home-based business is considered by most tax experts to be the ‘last great tax shelter’ for individuals?
For many traders, a home-based trading business, properly set-up and recognized by the IRS, can save them as much as $6,000-$10,000 every year!
However, you can’t just start deducting any expenses you want. And, as I learned early on, you won’t find out about the home-based trader taxation requirements from either your local tax preparer or off-the-shelf tax software.
You have to go to the experts.
That’s why I partnered with the best trader taxation firm in the business, Traders Accounting.
Their president, Jim Crimmins, is regarded as one of the nation’s leading authorities on trader taxation and small business tax reduction strategies.
I asked Jim the other day, “What is the most important thing a new trader should understand about trader taxation?” Here is what he said:
“I talk with traders every day. The problem I see facing almost all traders is that they come to my firm asking for help dealing with their profits,
losses, and expenses after they have been incurred, which in most situations, is simply too late.
“The sad truth is that most traders start thinking about capital gains and losses and trading expenses in January, after the previous tax year is over, and there is not much we can do at that point.
“I can’t stand seeing thousands (if not tens of thousands) of dollars in lost tax savings go down the drain. That obviously is a financial hit to
the client, but it hurts me as well, because it was completely avoidable if the trader had sought out tax education in the beginning.
“It boils down to this. All new traders need to learn about two financially critical issues: Trader Status and an accounting method for traders called Mark to Market. Understanding these two issues should be a requirement for all new
traders, and should be understood and acted upon prior to making their first trade.”
I agree wholeheartedly with Jim.
In fact, Jim has just produced a top-notch educational CD-Rom called Trader Status and the
Mark to Market Accounting Election. It has all the information you need about these important subjects.
I’ve watched it, and I highly recommend it. It has the power to help you save thousands of dollars this year.
In fact, I think that it is so important, that I have twisted Jim’s arm and made him discount the price of the CD by $20 for all visitors to my site. During checkout, simply enter the following coupon code: TRADERS
For more information, click here: Trader Status and the Mark to Market Accounting Election
To your option trading success!
About The Author
James Thomas is a successful private option trader and has created http://www.option-trading tips.com as an informative no-nonsense resource full of useful tips and information designed for option traders to improve their trading results.