ACCOUNTING WITH TRADELOG
Most securities traders are very busy and focused on trading, and some
traders don't want to deal with accounting headaches for securities, and
controversial IRS cost-basis
reporting problems on 2012 tax returns. TradeLog
software is the only good solution for securities traders. Futures and
forex traders don't need TradeLog, they can rely on the summary reporting
provided by their brokers - on a Form 1099-B for futures and a report
in-lieu of a 1099 for spot forex. Here's a great
While many securities traders use TradeLog on their own, others prefer
that our highly-experienced CPAs — we are the leading CPA firm in
trader tax and TradeLog — do this tricky and very important accounting
work for them. One simple mistake can throw off your tax bill by thousands
Trade Accounting Services
- one hour time block with a highly-experienced CPA
in our firm.
If you want to purchase more than one hour, please add this
to your cart and then change the Units in the cart before
A separate TradeLog program
license is required. Disclaimer
We support other CPA firms:
Many other CPAs and tax preparers have clients that get involved with
a material volume of securities trading. While these other tax preparers
may be great in other industries, they don't know trader tax and cost-basis
reporting rules well enough. They are afraid to sign tax returns with
material unreconciled differences on securities trades reported on Form
8949. Many CPAs and tax attorneys seek our support and we're very happy
to provide it without any competition with their clients. We appreciate
being the trader-tax partner of local CPAs who have great relationships
with their clients. Let us be your missing link on cost-basis reporting,
Form 8949 and trader tax matters. We can handle just those portions of
your clients' tax returns.
File a correct Form 8949 and expect some differences with
1099-Bs: Many securities traders remain frustrated as they
are unable to reconcile large differences with broker-corrected 1099-Bs.
While our TradeLog accountants can help you prepare an accurate Form 8949to
feed into Schedule D, we expect there will still be some unreconciled
differences with your broker-issued 1099-Bs. As pointed out in our extensive
content on the cost-basis reporting crisis, brokers have one set of rules
(apples) and taxpayers have a different set of rules (oranges). Watch
a MoneyShow video interview with Robert A. Green, CPA on this subject
from the June 2012 Traders Expo Dallas: "Tax
Flubs That Can Cost You Thousands."
Important notice for 2012 trade accounting and tax returns:
The IRS cost-basis reporting rules apply to 2012 and 2011 tax returns
and brokers are struggling. It's hard to believe, but in most cases for
2011, brokers’ 1099-Bs were wrong - or different from what taxpayer's
need - on proceeds, cost basis and wash sales. Many brokers reported
wash sales rather than actual wash sales and there is a huge problem
in reporting over wash sales. The IRS requires brokers to report wash
sale "identical positions", whereas the IRS requires taxpayers
to report wash sale "substantially identical positions" across
all their accounts including IRA accounts. No broker can ever give a taxpayer
what they fully need. TradeLog handles wash sales correctly for
taxpayer reporting. We expect similar problems on broker-provided 1099-Bs
for 2012, where mutual fund reporting is phased in for 2012.
The new cost-basis reporting rules require reconciliation with 1099-Bs
on the controversial new (for 2011) tax form 8949. Taxpayers must enter
trades on Form 8949 instead of Schedule D. TradeLog remains the one shining
light of sanity in the trade accounting for 2012 and 2011 taxes. Its calculations
are correct when used properly and it generates form 8949 with adjustments
required to reconcile with the 1099-B. See our suggested tax return footnote
above for use with TradeLog, "Tax
Return Footnote: 2011 Form 8949 and Cost-Basis Reporting Rules."
Get a grip on 2012 and 2011 trade accounting and tax reporting for securities
traders with TradeLog.
Even after using TradeLog,
many traders are still lost with unreconciled differences with their broker-provided
1099-Bs. Traders are turning to our CPA firm in droves for help. Our highly
trained TradeLog accountants can review your TradeLog data files, do the
original downloads if you prefer, complete your accounting work and try
to reconcile your data to botched 1099-Bs. The goal is filing a Form
8949 with your Form 1040 that makes sense.
If there are large unreconciled differences, our accountants
and CPAs can help you request 1099-B corrections from your broker. But,
don't turn to us for investigating all the botched errors made by brokers
on their 1099-Bs. That can turn into a wild-goose chase and lead to few
solutions, which could raise our cost to you and not solve the problem.
TradeLog's customer support desk may be willing to review your Form 1099-B
and TradeLog data file to investigate some of the differences, without
cost to you. Our firm and a leading accounting industry group asked the
IRS for relief and we may get that, too. See our in-depth cost-basis
reporting section and please sign our petition
to get the IRS help we need.
We prefer to use the best trade accounting program on the market TradeLog®
for GreenTraderTax. A separate license is required. Click
here to learn more.
Not only do we save traders valuable time but, more importantly, we get
the trade accounting right! As good as TradeLog® is, we still suggest
that an experienced trader tax accountant reviews the results for wash
sales and other complex tax treatment reporting, as well as reconciling
the results to broker-generated Form 1099s and year-end statements. Other
industry available trade accounting solutions often have problems with
wash sales (ie. stocks to options), MTM reporting, 481(a) adjustments,
tax treatment and more.
TradeLog® refers its customers to our CPA firm for these trade accounting
Trade accounting is too important to botch. Keep in mind that the most
important elements of a trader tax return are the trade accounting results.
Not only must your trade accounting be correct dollar-wise, it must adhere
to very complex tax rules for trader tax treatment (wash sales,
Section 475 MTM, short sales and much more).
Most consumer (off-the-shelf) accounting and tax preparation programs
are useful for general finances and simple tax preparation, but they fall
very short for hyperactive trade accounting. Most don't account for wash
sales, or short sales or mark-to-market accounting correctly. Some confuse
securities with futures with forex.
Cutting corners on trade accounting is a huge mistake. Make one mistake
on one trade lot and your numbers can be far off. Confuse a future as
a security and you may overpay taxes by 12 percent on those gains (the
difference in rates for 2012). Overstate wash sales and overpay your taxes.
Understate wash sales and be subject to back taxes, penalties and interest.
Don't reconcile to your 1099s with tax reporting and you can expect a
tax notice and maybe even a tax exam. Use summary reporting for securities
and that can trigger a tax exam too, since proper line-by-line reporting
is required on securities. The list goes on and on.
We recommend TradeLog® for GreenTraderTax, since we have provided
some tax support to this third-party product for more than seven years;
and we think TradeLog® does an excellent job on wash sales, mark-to-market
accounting, short sales and other complex tax treatment for active traders.
If you need trade accounting help, please allow us to help you. We provide
our services throughout the year. If you want our help on TradeLog®,
please purchase the product/subscription through us as resellers; so we
can support your purchase. Click
How our service works:
If you like, you can give a temporary password to your assigned GreenTrader
CPA to quickly access your transaction information on your brokerage firm's
Web site. Otherwise, just email us your data file. TradeLog® allows
us as accountants to work with you on their program. We ask you to change
your password immediately after we download the trades into the program
(as we don't need future access). You can trust our CPAs and accountants.
Note that some traders have many thousands of complex trades, and some
of these trade accounting jobs can be difficult. Some have taken five
hours or more.
We deliver your completed data files and you can continue using the program
on your own going forward, or have us do the future accounting jobs as
well. It's your choice.
Want a quote?
If you prefer, e-mail us your number of accounts, approximate number of
transactions, list your brokers, tell us if you have cash or mark-to-market
(MTM) accounting and mention if you have complex transactions if you use
the cash method (straddles, offsetting transactions, etc.) E-mail us at
email@example.com or call
our toll-free number. We will quickly reply with a time and cost estimate
for our trade accounting services.
A separate program license is required.
TradeLog® is owned by Armen Computing a third-party firm, entirely
independent of GTT. That's why we can't package the program along with
our tax preparation services. But if you want our support on the product
in tax preparation or otherwise, you need to purchase the program through
our site, as we are resellers. Click
here for our software page and then click through to Armen's site.
If you want to wait and see if our Trade Accounting Service will generate
accurate results on your account before you purchase the license, that's
OK. We will tell you it worked, and you can then purchase the required
program license. After purchase, we will deliver the results.
The use of TradeLog branded products is governed by Armen Computing Ltd.
(“Armen”) applicable license agreements. TradeLog and the
TradeLog logo are registered trademarks and/or service marks of Armen.
Armen is solely responsible for the information, content and software
products provided by it.
Green NFH, LLC cannot guarantee that such information and content supplied
is accurate, complete, timely, or that the software products provided
produce accurate and/or complete results. Green NFH, LLC does not make
any warranties with regard to the information, content or software products
or the results obtained by their use. Green NFH, LLC disclaims any liability
arising out of your use (or the results
obtained from, interpretations made as a result of, or any tax position
taken in reliance on information provided pursuant to, your use) of these
Armen software products or the information or content furnished by Armen.
Futures/Commodities and Currency transactions may or may not be included
within TradeLog and may be reported separately by your broker. Depending
on your particular circumstances you may or may not need to adjust or
combine certain accounts. We will not review anything related to your
particular tax situation including, but not limited to, your qualification
for trader tax status, the ability to use Internal Revenue Service (“IRC”)
Section 475(f), whether or not the prior year positions can be used in
an IRC Section 481 adjustment. We will not be issuing any accounting report
which may address any of the above missing elements.
Any questions about the TradeLog reconciliation or its application to
your particular situation should be reviewed by your CPA before filing
your taxes so that any necessary adjustments can be made.
If you have any questions about our TradeLog accounting services, please
contact us at firstname.lastname@example.org
or call us.
Thank you for placing your trust in us,
Robert A. Green, CPA and Managing Member of Green NFH, LLC
Darren L. Neuschwander, CPA and Managing Member of Green NFH, LLC
on Christie Kam CPA and our TradeLog Accounting Service
From: Nxxx Cyyy [mailto:email@example.com]
Sent: Wednesday, September 18, 2013 2:58 PM
To: Christie Kam
Cc: Robert Green; Mindy Bartholomew
Subject: Re: Cxxx, Nyyyy - Software Accounting Services - Christie Kam
You've done a wonderful service for us on this. We are very pleased; and,
for the first time in memory relative to anything related to income taxes,
we're actually looking forward to our next dealings preparatory to 2013
filings! Never thought I'd be saying that, under any circumstances...
After 10/15, my wife and I, and our CPA, will be scheduling another appt
with Mr. Green to go over the merits, under our particular circumstances,
of establishing a separate trading entity (e.g., GP).
Best, Nxxx Cyyyy