TradeLog® for GreenTraderTax

GreenTraderTax.com (GTT) is the number one re-seller of our TradeLog® software subscriptions and we are happy to be affiliated with them since July of 2001.

Products:

GreenTraderTax.com sells the complete TradeLog® software product family which allows investors with a few trades, as well as active traders with thousands of trades, to complete their trader tax return. In addition there are two versions for traders who have elected the Mark-to-Market  method of accounting: a full unlimited record version as well as a limited 1500 record version.  See our Products page for more details.

History:

Robert A. Green, CPA is CEO and founder of Green & Company CPAs, LLC which is probably the most well known accounting firms for active traders and investors. Green is a prolific speaker and writer on tax subjects, and is the author of the "The Tax Guide for Traders" (McGraw Hill - 2005) which is the definitive guide for trader taxation.

Bob Green came to us in early in 2001 asking us to incorporate Mark to Market accounting functions into our new TradeLog® trade and tax accounting software. Because of his expert tax assistance we named the product GTT TradeLog which has since become the industry standard for mark to market accounting for active traders.

On July 20, 2008 GTT TradeLog was renamed TradeLog MTM® in order differentiate our two companies, but in no way did this weaken our relationship. Green continues to strongly recommend our TradeLog® software as the only trader tax software that he and his CPAs are comfortable with using to file their client's tax returns. And we continue to recommend his accounting firm as the only reliable tax accounting firm catering almost exclusively to the special needs of traders and investors.

TradeLog MTM®

TradeLog MTM™ was designed to meet the special tax needs of active traders in securities who have elected or are about to elect the mark to market accounting method with the IRS.   

The MTM version offers all of the same features as TradeLog®, with the addition of mark to market tax accounting procedures for stocks and options traders.

Why is mark to market the wise choice for traders?

1. Trading capital losses are converted to ordinary losses and become exempt from the IRS wash sale rule.  MTM traders can deduct their ordinary trading losses against all other types of taxable income without limitation.
2. If a MTM trader has negative taxable income (Net Operating Losses), they can carry them back two tax years to get immediate tax relief (hence the term "tax loss insurance").
3. MTM Traders in securities are exempt from self-employment taxation and they may segregate investment positions to still get long term capital gains rate benefits.

Mark to market is the best of all worlds

If you are a serious trader, you need mark to market:

Per the new trader tax laws of 1997, IRC Section 475(f), "Traders in Securities" (475(f)(1)) and "Traders in Commodities" (475(f)(2)) may elect mark to market accounting (MTM) by April 15 of the current tax year (not after the year ends).   

The main effect of this tax law for traders is the conversion of capital gains and losses into ordinary gains and losses.  Therefore, if you lose a lot of money trading, MTM can save your hide.

For more information about the election, see How to elect mark to market.

TradeLog MTM™ makes your change to MTM easy

When you change your accounting method from "cash basis" to "mark to market", the IRS requires that you make a Section 481 Adjustment at the start of the year of change.  While this sounds challenging, it's a very simple task with TradeLog MTM™.

The software will take you through a series of simple questions at the beginning of the tax year and at the end of the tax year to determine the appropriate type of accounting method to apply.  When you first indicate that you will begin to use the MTM method, TradeLog MTM™ will automatically calculate your Section 481 Adjustment for you and generate a report for you along with your MTM trading Gains & Losses report. 

Our User Guide under the subject Mark-to-Market accounting (TradeLog MTM) outlines how to use these reports to complete one line item per broker on your tax return.  Both reports get attached to your IRS Form 4797.

As you can see, our software makes your change to the Mark to Market accounting method quick and simple.