GreenTraderTax Guide: Accounting for trading gains and losses.
(includes GreenTrader's proprietary worksheets and formulas for quick annual accounting, plus all the accounting rules and guidance you need).

Guide Highlights

Accounting for trading gains and losses is complex and very difficult for most traders. Most traders who qualify for "trader tax status" have more than 1,000 trades per year; some have tens or even hundreds of thousands.

For securities and some currencies traders, figuring out your trade accounting can be a nightmare and cost you too much valuable time and money. Commodities and futures (Section 1256) traders have it easy; their brokers send them a Form 1099-B showing "Aggregate Profit or Loss" and they can simply enter that number to their Form 6781.

Securities and currencies traders still don't get enough help from their brokers. IRS Form 1099s sent by your broker at tax time do not include securities or currencies trading gains and losses; instead, they only include proceeds on securities (and most have nothing for currencies traders). Some brokerage firms provide traders with reports of trading gains and losses, but most of these reports have unmatched trades or don't account for mark-to-market accounting or wash sales.

This Guide provides securities and currencies traders with a simple trader accounting solution. Use our "GreenTraderTax Inventory Approach™" or "GreenTraderTax Performance Record Approach™" worksheets with our guidance to calculate an annual net gain or loss amount per brokerage account.

Many traders use their own worksheets or consumer finance software programs during the tax year, which is useful for knowing their profit and loss. Many of these traders have trouble generating accurate tax return numbers that reconcile to their Form 1099s, and they don't make correct adjustments for mark-to-market accounting or Section 481(a) adjustments. Our Guide provides help to these traders. Don't chance reporting a gain that is higher then the correct amount and overpaying your taxes. Use our worksheets to double check your own trade accounting systems. Even commodities traders can use our "GreenTraderTax Performance Record Approach™" worksheets to double check their brokerage firm Form 1099-Bs (a wise idea in this era of brokerage firm job cuts and constantly changing IT systems).

Note our "cash method" worksheets mentioned above do not automatically account for wash sale adjustments; you must manually make those adjustments. A better solution for wash sales and trade accounting in general is a top trade accounting software program.

Investment managers use the performance record approach for required reporting of performance records - otherwise known as track records.

The best accounting solution for securities traders is TradeLog for GreenTraderTax. TradeLog® completely automates your stock, options and futures trades, and tax accounting. Save days of work and professional fees by using the program to import all your trades (prior and current years). The program generates IRS-compliant Schedule D (cash method with wash sale reporting) and Form 4797 (mark-to-market method with Section 481 reporting) which you can attach to your tax return. Click here to visit our TradeLog® for GreenTraderTax page to learn more.

See our main guide page for more offers and packages.

If you have any questions about this guide, e-mail or call us.

Many Webinars in March

Highlighted Recent Recordings:

*Entities & Retirement Plans for Traders
*Trader Tax Law Update: Current Developments
*2013 Tax Reporting & 2014 Planning
*Forex Taxation
*Audits of Performance Records
*Kick-Off to 2013 Tax-Filings for Traders
*ObamaCare taxes are starting to affect traders
*The Tax Court Was Right To Deny Endicott Trader Tax Status
* Investment management: Key updates
*Learn the DOs and DON’Ts of using IRAs and other retirement plans

Trader Tax Center

Tax Newsletter & Calculators

Highlights (see the full archive):

Mar 27: Protect yourself from market losses with a Section 475 MTM election Read More

Mar 25: IRS guidance on bitcoin transactions will chill its use Read More

Mar 24: SEC Large Trader Reporting Rule Read More

Feb. 27: Another trader tax court loss (Assaderaghi) Read More

Feb. 1: Net investment tax details Read More

Jan 14: New IRS guidance on SE tax deductions affects partnership AGI-deduction strategies. Read More

Jan 9: A major tax reform bill in 2014 is unlikely, and “tax extenders” may be history, too. Read More

Jan 7: Kick off to 2013 tax filings for traders. Read More

Dec 4: IRS final regulations for Net Investment Tax help traders. Read More

Dec 3: Bitcoin is a hot commodity, but is it taxed like commodities, assets, or currencies? Read More

Nov 15: Another non-business trader gets busted in tax court trying to cheat the IRS. Read More

Nov 6: Hedge fund investors depend on “assurance” from quality independent CPA firms. Read More

Oct 29: ObamaCare taxes are starting to affect traders. Read More

Sept 15: Not Easy For New Yorkers To Escape Big Apple's Tax Bite. Read More

August 30: The Tax Court Was Right To Deny Endicott Trader Tax Status Read More

August 18: Common trader tax mistakes Read More

July 24: Learn the DOs and DON’Ts of using IRAs and other retirement plans in trading activities and alternative investments Read More

March 31: PFG investors can deduct theft losses on 2012 tax returns with Rev. Proc. 2009-20 safe harbor relief. That’s great news! Read More

March 5: Caution, downloading securities Form 1099-Bs into TurboTax often leads to incorrect tax filings Read More

Sept 5: High-income traders and ObamaCare’s 3.8% Medicare tax Read More

GreenTrader blog archive, Forbes blog, Benzinga blog.


Bookmark and Share

Join our Email List to receive
our content and event invitations

tax strategy  |  traders  |  investment management  |  traders association  |  about us  |  blog
home  |  store  |  login  |  sitemap  |  contact us
Send mail to with questions or comments about this web site or click here
Copyright © 1996- Green & Company, Inc.   disclaimer  |  privacy