Tax Tips and Updates

  • Looking to get tax preparation completed early?  It is possible to get your 1099s earlier than you think.  Rather than waiting for them to come via mail on February 15th, your Broker/FCM may be able to provide it to you electronically if you request it.  The sooner your tax preparer has the 1099s, the sooner they can prepare your taxes and meet filing deadlines.
  • Do you trade any foreign accounts?  Last year, FATCA reporting was due June 30th.  However, this year, that reporting due date has been moved up to April 18th.
  • Do you operate a fund with foreign accounts?  The FATCA reporting due date has also moved from June 30th to April 18th.
  • Do you have sufficient volume and frequency of trading activities?  You may qualify for Tax Trader Status and get a huge tax advantage from all your trading expenses.  But remember, in order to contribute to a retirement account, you must have self-employed income.  Forming a trading  entity such as an S-Corp will allow you to compensate yourself, thus creating self-employed income.
  • Do you have capital losses?  Remember capital losses are limited and can only be used against capital gains.  Any excess is limited to $3,000.00 per year and would be carried forward.  A section 475 marked to market election can convert your capital losses into ordinary business losses, a huge tax advantage.  If you plan on making a Section 475 election, this must be done by March 15th.  Newly formed entities must make the election within 75 days of inception.

If you have any questions or are in need of a tax consultation, please email Mike@cogcpa.com.