Death and taxes. Unavoidable. Even for traders. In Episode 57 Rob Booker interviews Robert A. Green CPA, a tax expert who has prepared the returns of thousands of traders from all over the world and is the founder of Green Trader Tax.com. In this interview, Bob volunteers a lot of valuable information to help traders with tax-related sorrows — such as what to do if you get audited as a trader.
Bob Green describes the process of amending returns and defines “trader tax status.” He also talks about how to qualify for trader tax status, and why it might be beneficial for you to qualify for trader tax status. Rob and Mr. Green also discuss how trader tax status affects your deducting of business expenses — as well as clarifying the distinctions between “business expenses” versus “investment expenses.”
Bob describes the most common mistakes that traders make when filing their tax returns, and he gives specific advice on filing for securities traders and forex traders. Rob asks what traders should do if they get letters in the mail, informing them that their returns are going to be audited. Bob Green also gives advice on what to do if you have a stubborn IRS agent.
In this episode you’ll also hear about some things you should not do in order to avoid provoking the IRS to “throw the book at you.” And Bob Green provides insights into why traders who have gigantic losses tend to get audited. Oh, and you’ll hear why some retail brokers don’t send out tax statements at the end of the year. All of this and so much more in Episode 57 of The Traders Podcast. Listen and subscribe!
Robert Green’s links:
Web site: Green Trader Tax.com
Recent Bob Green webinar on entities for traders: Click here to download