Low-cost representation of taxpayers with controversies before the U.S. Tax Court
Tax Advisory for Day-Traders
Overview
George Parrott CPA J.D. LL.M. Rule 31 Mediator, a tax advisor at the Tax Law Institute, helps day traders manage complex tax rules, optimize deductions, and handle Trader Tax Status (TTS). He focuses on key areas like accounting methods, expense write-offs, and compliance
Managing Tax Status and Elections
- Trader Tax Status (TTS): Helps you qualify as a business instead of a casual investor.
- Mark-to-Market (Section 475[f]) Election: Sets up an accounting method that bypasses the strict $3,000 capital loss limit and avoids wash sale rules.
- Entity Structuring: Evaluates if setting up an S-corporation or partnership fits your trading volume. [1, 2, 3]
Handling Deductions and Rules
- Business Expense Write-Offs: Deducts costs for trading software, hardware, home offices, and internet.
- Wash Sale Rule Navigation: Manages complex rules that disallow loss claims when repurchasing identical assets too quickly.
- Loss Management: Uses business losses to offset other ordinary income properly
Filing and Compliance
- Accurate Record-Keeping: Organizes high-volume daily transaction logs required for audits.
- Estimated Tax Payments: Calculates quarterly payments to avoid underpayment penalties
Low-Cost Representation & Tax Advisory for Day-Traders
If you do receive a notice of deficiency from the IRS for back taxes, it would be prudent to let us petition the U.S. Tax Court on your behalf. Or, if you've already filed then let us represent you and wait for the case to be sent to the IRS Independent Office of Appeals, where we can possibly settle for less money and avoid any litigation. We've had great success with Appeals and have a 'win/no loss' record before the Court. Or, we can reduce your tax with an OIC. We cite amazingly low flat-fees to fit your budget that can be easily paid online, one-time, and you're done.