Webinar: Thursday, Feb. 2, 2012 | 04:30 - 05:45 pm ET
2011 Tax Returns: What's New For Traders To Deal With This Tax Season?
Hosts: Robert Green, CPA & Darren Neuschwander, CPA, Managing Members of Green NFH, LLC
- Traders will soon be receiving more complex and beefed-up 1099-Bs for their 2011 taxes, reflecting new IRS cost-basis-reporting rules. For 2011, the phased-in rules only apply to corporate stock both purchased and sold during 2011. In prior years, only proceeds on stock were included, so it was easy for traders to reconcile their massive trading activity with 1099-Bs, avoiding IRS-computer-generated tax notices.
This year could be a problem for many securities traders, with difficult reconciliations. IRS rules require explanations of differences, in a line-by-line trade manner and that could be a nightmare for some traders. Don't rush to file early, and expect - and you may also have to demand - corrected 1099-Bs from brokerage firms. Stay in touch with our content to stay clear of this type of trouble. These rules are making it very difficult for the authors of TradeLog, but they are doing a great job. Is this going to be another example of government trying to fix things, but maybe making it worse?
- There are plenty of new forms and rules for foreign transactions, too. We will have updates on foreign bank account reporting (FBARs), the IRS voluntary disclosure program (OVDP), the new tax form 8938 for reporting foreign assets.
- We will cover lots more, too. Traders should not miss this event.
New Partner & CPA Firm Announcement:
We are very pleased to announce that effective January 2012, Darren Neuschwander, Nathan Faircloth and James Hardy Jr. became Member owners of our CPA firm. Congratulations and thank you to them and their families.
To accommodate our new partners, in January 2012 we formed Green NFH, LLC. Mr. Green and Mr. Neuschwander lead the team as Managing Members.
Green NFH, LLC takes over from Green & Company CPAs, LLC as the firm responsible for performing the public accounting services originated by Green & Company, Inc. through GreenTraderTax.com and GreenTraderFunds.com.
"Since Darren and his partners Nathan and Jamie joined GreenTraderTax many years ago, I knew they were stars and they would be a huge asset to our firm and our clients," Green says. "I am thrilled to now be partners with them, as this assures our professionals, clients and my family an excellent long-term future."
"Our professionals and clients can rest assured that the future of our firm as a whole is stronger, and I am very excited to share this news with our clients," Neuschwander says. "It's exciting to co-manage the CPA firm along with Bob, and to help build off the success Bob has created with the GreenTraderTax brand, now supported by Green NFH, LLC."
"As a Member of Green NFH, LLC, with significant experience in audit and attest services, I am excited to launch our audit and attest services to the investment management industry," Hardy, Jr. says.
"Our partnership gives us the opportunity to grow by maximizing each member's strengths," Faircloth says. "We expect by coming together as a stronger unit, the needs of our growing clientele will be met, not only now, but long into the future. We will continue to provide great, high-quality services to suit the needs of our clients while seeking long-term relationships. It's exciting to have the opportunity to partner with such talented professionals to serve our clients."
Our roster of the top CPAs and attorneys in trader tax remains the same, and they are all very happy about this news. Clients should notice few changes this tax season, other than a continued great customer experience. We will simply move all retainers paid, engagement letters signed and files uploaded to date to our new CPA firm. The new firm will be listed on 2011 tax return filings, too.
Green is located in Connecticut and New York City and Neuschwander, Faircloth, Hardy and several CPAs and staff members are located in our offices in Alabama. We have other professionals working remotely around the country, too.
Our firm brings creativity and design from a money center and productivity and excellence from a leading production center. It's the new American way. We don't outsource like many accounting firms do these days, but rather we insource with the best CPAs around. We deliver big-city ideas for small-town prices. With our production now more concentrated in Alabama, we will improve productivity and effectiveness even more for the benefit of clients. We strive to improve every year with advancements in best practices and customer service.
Thank you for being our valued clients.
Robert A. Green, CPA & Managing Member
Darren L. Neuschwander, CPA & Managing Member
Nathan G. Faircloth, CPA & Member
James H. Hardy Jr., CPA & Member
Why traders should choose GreenTraderTax this tax season.
It's the official start of the 2011 tax preparation and filing season.
- Very few tax professionals in the country specialize in serving business traders. We are the leading firm -- read why you should consider us this tax season. Savings start at around $8,000 and only go up!
- As you get bombarded with advertising for free online tax solutions with online chats and accuracy guarantees, consider that those savings may be $100 for a software charge. The big problem is that active traders will probably overpay or underpay their taxes by thousands of dollars. Guarantees don't cover leaving out trader tax status, choosing the incorrect tax treatment, or using the wrong trade accounting net income or loss. So, while these solutions may sound attractive to simple wage earners, they are the wrong solutions for business traders and active traders, who have many tax pitfalls and opportunities for significant tax savings too. But, most accountants are not familiar with trader tax savings strategies, and it's well beyond the parameters of what these services and local accountants can offer.
- If you're speaking with a local tax professional, find out if he or she is qualified to deal with your special tax needs. Ask them if you qualify for trader tax status (business treatment), if you can use Section 475 MTM ordinary loss treatment, how to handle ETF options and spot forex, if you can do a retirement plan contribution and deduct health insurance premiums in connection with your trading gains, if you owe self-employment tax on trading gains, and what types of business or investment expenses you can deduct (i.e. is education included). If they draw a blank on any of these questions - they very likely will - then you should get up and walk away. Many local CPAs prefer that traders work with trader tax experts, as they don't want tax preparer penalties either. With complicated new 1099-Bs coming this tax season - which are still not good enough for tax reporting - it's another excellent year to use our education center, trader tax guides, trade-accounting software, and consulting and tax preparation services.
- Tax preparation is our most popular service and we guarantee you will be very pleased with our great prices, fast service and wonderful customer experience. Just read our many great testimonials. We've been the respected, trusted and leading CPA firm for online traders since day one. We have the best, most experienced trader-tax preparation CPAs in the country.
In our tax preparation service, we distinguish between "Investors" and "Business Traders."
Business Traders, learn more about how we can help you, and get started here.
- While both may be active traders with complex tax treatment and accounting issues for trading gains and losses, business traders get unlimited business deductions, while investors can't deduct home office and education expenses, plus investors face many restrictions on allowable investment expenses. The average tax savings for business traders versus investors is around $8,000. But, investors still need us to make sure their trade accounting is correct and to maximize investment expenses. More importantly, we use our industry-leading judgment to determine if you qualify for trader tax status. We often help clients qualify in the current year, while we prepare their tax returns for the past year. In many cases, if you qualify in the current year, it's better to capitalize your prior year investment expenses to deduct them as start-up business expenses in the current year. Investors need us too and we offer them a break on our fees.
- Business traders may also elect (on time) Section 475 MTM ordinary loss treatment on securities, avoiding wash sales and capital loss limitations. Some clients have gotten refund checks in the hundreds of thousands of dollars from net operating loss (NOL) carryback returns, and they couldn't get any of that as an investor. One key strategy that we utilize is dealing with significant capital loss carryovers. You want subsequent capital gains treatment to use up capital loss carryovers. Yet, if you have new trading losses, you prefer Section 475 MTM ordinary business loss treatment. We navigate out of this hole with entities. See our entities page to learn more. Again, if you're an investor and becoming a business trader soon, we can help you with these strategies too.
- Business traders should consider forming an entity to save taxes with retirement plans and health-insurance premium deductions. Although investment companies can try these strategies too, they're often tax inefficient and potentially costly, with self-employment taxes costing more than income tax savings. For business traders, it's almost always tax beneficial with net savings of several thousand dollars up to $17,000 for a married couple.
If you have been our tax preparation client for years and stopped trading in 2011, it's important to handle tax issues for exiting or suspending your trading business properly. We value our relationship, and can add good value on many tax fronts at a good price. We work with many clients who are not traders, and our CPAs have excellent experience in many different practice areas.
If we formed your entity in 2011, or prior years, we strongly recommend that you engage us for tax preparation. We can then make sure you take advantage of all our entity tax strategies, with proper execution and reporting on your tax returns. New traders have many important start-up tax and accounting issues, so maximize your tax benefits with our firm.
We look forward to hearing back from you soon. Thank you.
Robert A. Green, CPA
CEO of GreenTraderTax
Managing Member Green NFH, LLC
If you have any questions, please contact our customer support
at 888-558-5257 (toll-free in US only), or 646-224-6923 (worldwide),
or by email to firstname.lastname@example.org.
After you read our leading content about trader tax, entities, retirement plans, IRS exams, ETF, forex and other tax treatment, and investment management, you will probably have some good questions for us. The best way to get quick and dedicated answers to your specific questions is with a personal consultation with our Robert A. Green, CPA/CEO and our other GreenTrader professionals (tax attorneys and CPAs).
|GreenTraderTax Guides: |
Green's 2012 Trader Tax Guide is all new and our best ever!
The Tax Guide for Traders (McGraw Hill 2004). Great reviews!
2012 GreenTraderTax Guides: 2011 Tax Return Examples for Securities Traders and separate examples guide for Commodities, Futures & Forex/Currency Traders.
See our excellent packages.
Our 2012 guides come out by mid-February. You get both 2011 and 2012 with purchases now.
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