Tax Advisory for Day-Traders

Led by Distinguished Research Professor of Law Daniel Ng, the Tax Advisory is provided remotely by an independent group of financial specialists who are academics and tax accountants at the Tax Law Institute. They are not members of the U.S. Tax Court Bar. They operate as the financial research arm of the TLI Litigation Services Group, which serves day traders exclusively. The advisors offer specialized financial guidance that helps frequent traders manage complex tax rules, optimize deductions, and minimize liabilities. To begin. purchase a Subscription below and then sign up with our Tax Analyst to schedule a profile assessment (go to the bottom of this webpage). 

Advisors

Daniel Ng, J.D., LL.M., is the Adjunct Distinguished Research Professor of Law (pictured) and Chief Advisor who specializes in Estates, Gifts, and Trusts at the Tax Law Institute. He ran a hedge fund for twenty years and is an expert in security analysis. He is a graduate of the Wharton School of Finance at the University of Pennsylvania.

George Parrott CPA, J.D., LL.M., Rule 31 Mediator is the Chief Tax Advisor and a Teaching Fellow at the Tax Law Institute. As a tax advisor, he 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.

Louis Terrero CPA, MBA, is an expert in retirement planning. He is a Licensed Insurance Agent. He serves as the forensic investigator for the TLI Litigation Services Group.

Tax Analyst

Kathryn Franklin is a Tax Analyst at the Tax Law Institute. She holds a Master of Science in Accounting and a Master of Science in Auditing from Purdue University. 

• 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]

• 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

• Accurate Record-Keeping: Organizes high-volume daily transaction logs required for audits.
• Estimated Tax Payments: Calculates quarterly payments to avoid underpayment penalties

The average trading volume for an individual day trader varies widely, typically ranging from 10 to 100+ trades per day, depending on their strategy. [1, 2, 3]

Trade Frequency and Share Volume

• Scalpers: Execute 50 to 100+ trades daily, capturing tiny price changes.
• Momentum Traders: Make 5 to 20 trades daily, focusing on high-catalyst stocks.
• Share Quantity: Often trade blocks of 500 to 5,000 shares per individual transaction, depending on account size and leverage. [1, 2, 3]

Security Liquidity Requirements

• Minimum Daily Volume: Day traders generally target stocks with an average daily trading volume (ADTV) of at least 1 million shares to ensure fast execution and tight spreads. [1]
• Market Share: Individual retail day traders make up a fraction of total exchange volume, while automated and institutional players drive the bulk of heavy daily volume. [1, 2]

We use the following criteria to determine our monthly charges

• Depending on your trading style or strategy you are looking at (scalping, swing, momentum)
• Which market you plan to trade (stocks, options, futures)   
• Low Monthly Fees:  $500 per month up to $1500 per month.