Tax Planning

Getting Ready For Year 2019 Trading

The active trader needs to plan ahead for the tax consequences of their trading activities. This section lists critical information the trader should consider for the year 2019.

Each active online stock trader should strive to qualify as a “Trader In Securities” with the IRS, if possible. Being a Trader In Securities means you actively trade your account on a full or near full time basis. Once qualified you have tax reporting options that can save you a tremendous amount of tax dollars. Visit our welcome message for an overview of the benefits of achieving trader status.

Our goal is to not only to help you to achieve “Trader Status”, but to assist you to become completely educated about the tax laws, help you elect it properly, and tax plan your way to dramatic tax savings. It is critical for your trading career!

We offer everything you need to become educated about these laws and make the proper IRS elections to take advantage of them. Additionally, we are available for teleconferences to personally consult with you.
Whether or not you trade full time, having your 2018 tax return prepared by the CPA experts at will prove invaluable for you. Our knowledge of the tax laws for online stock traders is unsurpassed.

For New Traders:

How you treat your trading activities from a tax standpoint is crucial! You have choices that can mean savings of literally tens of thousands of tax dollars to you. Your trader status election must be made by April 15th of the year 2019, and is critical. The election process is complicated and depends upon the results of your trading activities. I can not stress the importance of properly planning and making this election.

  • If you have a full or part time job other than trading, but still are fairly active in your trading activities and want to learn your tax reporting options we suggest you purchase our “Daytrader Tax Introductory Guide”, you can download it today for just $29.00. It provides an overview of the tax laws, a questionnaire to determine your eligibility and our interpretations and guidance. If you feel after reviewing this information you qualify as a trader and would like to upgrade to one of our products, the cost of this purchase will be credited against the price of the other packages.
  • If you actively trade on a full (or near full) time basis you will qualify for some very beneficial tax treatment. You will qualify as a Trader In Securities and need to make the proper elections by April 15th of the year 2019. If you do your own taxes or your CPA is not familiar with these laws you can purchase our “Daytrader Tax Comprehensive Guide” package for$99.00 or our “Daytrader Tax Comprehensive ‘PLUS’ Guide” package for $199.00. The information contained in these tax packages provide everything you will need to become educated about the laws and file your taxes. To insure everything is done properly, please call our office for a personal consultation. Creating the proper tax elections is absolutely critical.

For Active Traders who did not elect ‘MMA Trader Status’ in 2018 but wish to do so for 2019

For those individuals who actively traded during 2018 but did not elect trader status with the IRS, the year 2018 presents new opportunities for you. First, you need to carefully evaluate your situation before making the trader election for the year 2019. Evaluate your 2018 trading results. Were you profitable, break-even or did you incur losses? It makes a difference, following are some items to consider:

  • If you were a profitable or break-even trader during 2018 a valid Trader election for the year 2019 should be made. Your only potential downside is the tax consequences associated with your IRC section 481 adjustment, and this is usually minimal. I recommend that you have your 2018 taxes professionally prepared by us. We will be able to evaluate your situation and properly plan and make your year 2019 election. Or you could purchase our “Daytrader Tax Comprehensive ‘PLUS’ Guide” for just $199.00, it includes up to one hour of our time at a 30% discount, which will prove invaluable to you. We will personally prepare the calculations necessary for IRC section 481 and provide the “one on one consultation” you need to report your year 2019 trading activities with a valid trader election.
  • If you incurred substantial losses during 2018 but are considering a valid trader election for the year 2018 you should be careful. Your reported 2018 losses were “capital losses” and were limited to a net loss of $(3,000). If you elect trader status for the year 2019, your gains will be treated as “ordinary income” and will not offset your 2018 losses. This means that your 2018 loss carry forward will not be available to offset year 2019 gains. This is a crucial planning point that needs to be discussed on an individual basis. We highly recommend you call our office to discuss your personal tax situation. You may purchase a personalized telephone conference through this website at a very affordable price. We will evaluate your personal tax situation and devise a strategy that’s perfect for you.

For Active Traders who did make a valid “MMA Trader Status” election during 2018

First of all, congratulations are in order! You made a very intelligent tax planning decision that I’m sure you are now grateful for. I would highly recommend that your consider our tax preparation services for your 2018 tax returns. We are experts in this area of tax law and the insight and planning opportunities we can and will bring to the table for you may prove invaluable. You may also want to consider the benefits of incorporating your trading activities. Incorporating your trading activities into a separate “trading entity” removes all reporting activity from your personal tax return, which may prove beneficial under certain circumstances.

Please visit our Benefits of Incorporation section on this website.


In summary, each trader should strive to obtain MMA trader status at some point. The key is when and how this should be done. We are here to help you minimize your tax liabilities and are experts in this area of tax law. We should be considered a professional partner in your trading activities, so please don’t hesitate to contact us. We are here for your benefit.

Mann & Company CPA’s P.C. Paul S. Mann CPA

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