TAX INFORMATION

UPDATE: This is the second year I have prepared my own taxes using TurboTax on the web. I use TT to calculate the tax (just inputing profit/loss, dividend info etc as a single number), then print out the forms, add my 60+ page trading print-outs from my broker .. and that is all there is to it! Too bad I threw away $500 on a company (next paragraph) that tried to make me think I could not do it alone! If you want trader tax information & honest assistence, use Traders Accounting and AVOID anyone else, especially if their name is also a color that reminds you of money (!).

I had a nightmare experience with one company (whose name is a color...) & am still trying to get back some of the money I paid. Update March 2005, nearly 12 months after paying a $500.00 retainer then not using their services due to not being able to work with the accountant they assigned as he was so condescending and outright rude, I still have received no refund even though a portion was "promised" to be refunded. They have not replied to my emails in over 5 months & I have basically given up hope of ever seeing a penny of my $500 back!
Update July 2005: I have written off the $500.00. They still do not reply. This is, in my opinion, definitely not an honest or reputable company even though they "claim" to be. What can I do except warn others to stay away, far away.
Lesson learned: if a company rep, or even the President, tries to "close" you into signing up for their services on the first phone call, with a $500 or so retainer ... run!

Traders Accounting (which was highly recommended by members of the Tampa Bay Traders group & many other of my fellow traders) were honest enough to tell me when I phoned, that since my first year trading resulted in a net loss, I really didn't need to use a professional tax service just yet! (the one mentioned above just "closed" me, got the money & from that point on ... well, the money is gone...)

I have talked to the Traders Accounting people several times on the phone & they have always been incredibly courteous & kind and given freely of their advice without once trying to pressure me into commiting to their service. I plan to use them when I get to the point of needing serious tax advice.

Traders Accounting offers a free tax newsletter with lots of useful tips as well as occasional free online courses.

Traders Accounting also sells a Traders' Tax Book for $49 called "Tax Secrets for Traders" which I highly recommend as an invaluable resource to learn how to set things up right from the beginning.

Unfortunately I can no longer recommend GTT Trade Log software (for tracking trading accounts) because I learned they are affiliated with the above tax accounting firm that refuses to answer my emails or return any portion of my deposit; and

Many people just track trades with Excel and find it works as well as any of the fancier software. For a FREE and IMO better version of Excel, go to http://www.openoffice.org/ and download their free office bundle (Word, Excel, Power Point clones).

Ask the Traders Accounting people & they will email you the Excel spreadsheet they use for trade accounting .. for free. These are good people. :-)