Do filers who have trader tax status with Mark to Mark election need tradelog or another accounting

USA Discussion in 'Individuals' started by Bob Murphy, Apr 5, 2018.

  1. Bob Murphy

    Bob Murphy

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    About me: I'm a trader with trader tax status. I do not have a company. I did have a few trading accounts, but most of the time I traded them at different times, not simultaneously.

    I'm trying to hire a CPA to do my taxes. I hired a firm who charged me for incorporation (questionable advantage after I went through the math), sold me this terrible application tradelog, etc. then decided they needed more billable time to actually complete my return.. In all, for me to file my personal return is going to come to $4K. Most of that takes the form of 'trade accounting', meaning they go over the 1099s from the brokerages and manually keep track of stuff, at $275 an hour.

    I reached out to another accountant who told me that because I made a mark to mark election wash election that any potential wash sales are a non issue and I don't need to pay all this money for the accounting services after all. Of course, he wants me to retain him--so I'm unclear who is right in this situation.

    If you elect mark to mark, do you need to have custom 'trade' accounting services? Or is this just a scam to milk me for even more billable hours (the second accountant suggested this was the case).

    I would say that I am unhappy with the firm I retained. When I asked them if they were sure I needed this trade accounting, they told me to consult my accountant. THAT'S WHAT I RETAINED THEM FOR!!! They sold me this horrific piece of software (tradelog) for $500 that wasted hour after hour of my time. The other accountant I spoke with told me they were not very ethical as an accounting firm and had sold me a bunch of things I did not need.

    Question is, who is right?
     
    Bob Murphy, Apr 5, 2018
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