Tax Services for Day Traders in Surprise, AZ

Why Have a Professional Prepare Your Taxes?

In the age of DIY and free tax software, it can be difficult to see the value in hiring a tax service to help you when it comes time to file. Many of us are of the mindset that there’s no good reason to pay someone else for something we can do ourselves.

While this philosophy makes sense for something simple, like washing your car or mowing your lawn, tax preparation is an entirely different beast. There are a lot of inconveniences and unexpected issues you may come across filing on your own, especially if you’re a self-employed or even an incorporated day trader. Read more

Day Trading Business Resources in AZ

Everything You Need to Know About a Registered Agent for Your Trading Business

Navigating all of the legal and logistical requirements of forming and running your own business can be overwhelming. You need to be sure your operation is compliant on a local, state, and federal level in order to set yourself up for long-term success (that’s why we always recommend consulting a professional to help with the process).

One of the requirements for compliance that can sometimes be confusing is the designation of a Registered Agent. Especially if you’re running an active trading business, it can be difficult to determine what is really necessary to meet this requirement. Let’s break it down so you can make the right decision for your enterprise.

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Business Entity Resources for Day Traders

What Are the Advantages of Forming a Business in the State You Reside In?

If you work as a day trader, incorporating your enterprise is a smart move. There will be a lot of considerations for you to make as you begin to make your business official—what type of entity you want to be, who (if anyone) will help you with operations, and which state is the most ideal for registration.

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Trader Tax Services in AZ

Understanding the Wash Sale Rule

It’s important for anyone who buys and sells stock on a regular basis to be aware of tax code policies that can affect you come tax time. We understand that this can be a lot to keep track of—especially for day traders—and not to mention pretty confusing!

The best solution is, of course, to have a professional advise you and handle your taxes so you don’t have to worry about trying to figure out all the rules. However, that doesn’t mean you shouldn’t educate yourself on the tax regulation basics!

Start with our breakdown of one of the most inevitable policies you’ll have to deal with in the trading profession: the wash sale rule.

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Benefits of an LLC for Day Traders

How Does an LLC for Traders Work?

If you just started day trading, you might be wondering whether or not it would be a good idea to set up a Limited Liability Company, better known as an LLC, for your trading venture. There are a lot of established day traders who have created LLCs for day trading purposes. It doesn’t make sense for everyone to do it, but it can be beneficial for those who meet the qualifications.

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Day Trader Tips

What Your Day Looks Like When You’re a Day Trader

If you’re thinking about becoming a day trader sometime soon, you should begin by learning about what your days will be like once you start trading day in and day out. There are a lot of people who are under the impression that day trading is one big adrenaline rush filled with exciting moments throughout the course of an average day. There will be some days that are like this, but more often than not, your days are going to be relatively ordinary when you’re a day trader. And that’s not necessarily a bad thing!

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Becoming a day trader

So You Want to Become a Day Trader? Here’s How

Does the idea of spending your days buying and selling stocks in an effort to turn a profit excite you? If so, you might be thinking about trying to become a day trader. Thanks to the rise of the internet, more and more day traders have been popping up over the last 20 years or so with varying degrees of success.

If you’d like to try it, here are the steps you’ll need to take to turn yourself into a day trader:

Put together enough funding to start your day trading operation

In order to become a day trader, you’re obviously going to need some money to start off with. This money should not be money that you’ve set aside for your child’s college fund or for the house you and your spouse have been saving up for. You don’t necessarily need tens of thousands of dollars, but you will need enough money to sustain your operation when you begin buying and selling stocks regularly.

Do your homework before you start buying and selling stocks on a whim

There are some people who are under the impression that day trading is easy. They think traders spend a few hours buying and selling stocks and the rest of the day goofing off. But this couldn’t be further from the truth! The bulk of the work that you’ll do as a day trader will involve researching stocks before buying and selling them and monitoring stock market patterns. This will consume much of your time and will inform each and every decision you make.

Invest in day trading software that’ll allow you to chart stocks and buy and sell them

To buy or sell stocks, you’ll need to invest in day trading software that will make it possible. Research your software options before selecting the software that will work best for your specific needs. You’ll also need to find an online broker that specializes in assisting day traders.

Start off slow and avoid taking too many risks at first

When you first start day trading, you might be tempted to take all kinds of risks in an effort to make a big splash and prove that you’re legit. This is the wrong approach to take. Instead, you should start off slow and learn about how day trading works. There will be plenty of time later to get more aggressive once you’ve learned the ropes.

New day traders will also need to keep taxes in mind as they work to get their feet wet. Trader’s Accounting can set you up with trader tax preparation services and answer any tax questions you might have with regards to day trading. Contact us today if you’re launching a career as a day trader!

Market to Market

Mark-to-Market Election Explained

If you’re an active trader, you could benefit from what’s called mark-to-market election in a big way. It can be especially useful for those who are just starting to make their mark in the world of trading. There are some very strict IRS guidelines surrounding mark-to-market election, which means that not everyone will be able to take advantage of it. But if you can, it can be very beneficial in reducing your tax liability.

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