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Day Trading: Mark-to-Market 475(f) Election?

  #10 (permalink)

Los Angeles, CA
Trading Experience: None
Platform: N/A
Favorite Futures: Stocks Only
Posts: 20 since Jun 2012
Thanks: 7 given, 5 received

SMCJB View Post
I'm actually a Green Trader Tax client, or Green Neuschwander & Manning client as I believe they are now known, and have been for 7+ years. In summary they are excellent, and really really know their stuff when it comes to trading related issues. The founder is Robert Green who is based in the North East. If you need any consultations regarding entity setups etc they will probably be with him. The partner in charge of my account (Neuschwander) and the accountant that does the majority of the work are both in Alabama. They have an online portal for uploading documents, and are extremely responsive to emails. I also think they are competatively priced, but don't have a lot of experience with other accountants. I've been very happy with the limited dealings I have had with Robert, the semi-regular dealings I have with Neuschcwander and the constant dealings I have with my accountant, who has remained the same for all 7 years. Robert Green is THE go to guy on trading accounting and writes regularly for most of the trading publications and for Forbes. They have a huge amount of info on their website including the following...

Green’s Golden Rules For Qualification For TTS
Our golden rules* for qualification are based on years of experience. The trader has:
  • Substantial volume – at least four total trades per day, 15 per week, 60 per month (Poppe court)
  • Substantial proceeds
  • Regular
  • Frequent – a trade execution on 75% of available trading days
  • Continuous
  • Time
  • Daily market movements – average holding period under 31 days (Endicott court)
  • Intention to run a business and to make “a” living
  • Business setup
  • Materiality

They also have, or at least had, some blogs detailing the IRS court cases on this matter, but I didn't wanna do all the work for you. Feel free to PM me if you have specific questions.

Thanks for the link. I will look into it and see if there are any other pertinent blog entries. I'm pretty sure the Green's 2018 Trader Tax Guide PDF will cover the information I need.

If you claim mark-to-market, can you have long-term investments in a separate account and claim the long-term capital gain tax rate for long-term investments?

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