Pro Trader Tax, LLC

Keeping more of your after-tax profits

Certified public accountant in Denver, CO (show on map)

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Virtual tax advisory firm specializing in tax planning and preparation for active business traders and investors, helping them take advantage of trader tax benefits.

Call (303) 638-3400

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About

Pro Trader Tax is a virtual tax advisory firm specializing in tax planning and counselling, tax preparation, entity formation, and retirement plan services for active business traders and investors. Business traders are eligible for several tax breaks not available to investors, including the ability to deduct trading expenses as business expenses, elect Mark-to-Market accounting, and deduct losses as ordinary income.

The Company's founder, Al Davidson, is a CPA with 25 years of experience in accounting, tax, and small business consulting.

25 years of CPA experience

Specializes in trader tax law

Frequent speaker at trader and investor tax seminars

Virtual firm - can serve clients nationwide

Experience with complex MTM elections

Services

Business Trader Status Analysis/Review

Analysis and review to determine if you qualify as a business trader for tax purposes

15-point qualification test IRS trader status determination

Business Trader Entity Formation

Setting up legal entities (LLC, S corporation) for your trading business

LLC formation S corporation election

Mark-to-Market Accounting Election

Election under Section 475(e) and 475(f) to deduct trading losses as ordinary losses

Ordinary loss treatment MTM accounting method

Income Tax Planning and Tax Preparation

Tax planning and preparation for traders and investors

Schedule C deductions Above-the-line deductions

Bookkeeping and Accounting

Bookkeeping and accounting services for traders

Trading journal tracking Expense categorization

Reviews

Rating

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Reviews

Frequently Asked Questions

What is business trader status? +

Business trader status is a tax classification for individuals whose trading activity constitutes a trade or business under IRS rules. Traders can deduct expenses as business expenses and elect Mark-to-Market accounting to deduct losses as ordinary income.

What is Mark-to-Market accounting? +

Mark-to-Market (MTM) accounting under Section 475(e) and 475(f) allows active business traders to deduct their trading losses as ordinary losses rather than capital losses, providing a significant tax advantage.

Who qualifies as a business trader? +

The IRS has stringent tests to determine if someone qualifies as a business trader. Factors include number of trades, percentage of trading days, holding period, hours per day spent trading, and intent to run a bona-fide business.

What tax benefits do business traders get? +

Business traders can deduct trading expenses as above-the-line deductions (not subject to AGI thresholds), deduct losses as ordinary losses, and deduct home office expenses, seminars, journals, software, and margin interest.