NPCCPA Posted April 6, 2008 Report Share Posted April 6, 2008 New client, says she is a currency trader, says she does not receive any 1099-B forms but she gave me a schedule of currency trade activity indicating a "P&L" that appears to be the profit on the trades, and a commission paid on each trade. Where does all of this activity get reported, a Schedule D or a Schedule C or both; I say both because she has expenses for doing business; ie computer, software, supplies, etc. Is this a Schedule C with the profit on each trade reported as the income on Schedule C and no Schedule D? I appreciate all replys. Have a good tax season. Nick Quote Link to comment Share on other sites More sharing options...
jainen Posted April 6, 2008 Report Share Posted April 6, 2008 >>New client, says she is a currency trader<< Before you accept this engagement, you want to be real sure you understand why she isn't going back to her previous accountant. Currency trades are up there in the stratosphere if not totally outer space. Currency contracts are section 1256, which will take more time for you to research than you have in the next two weeks. Offer to prepare an extension based on the P&L "as if" it were Schedule C, priced accordingly, with the understanding that the actual return won't be completed before June and will have an additional fee. If she declines, you won't be able to help her at this late date. Quote Link to comment Share on other sites More sharing options...
NPCCPA Posted April 6, 2008 Author Report Share Posted April 6, 2008 >>New client, says she is a currency trader<< Before you accept this engagement, you want to be real sure you understand why she isn't going back to her previous accountant. Currency trades are up there in the stratosphere if not totally outer space. Currency contracts are section 1256, which will take more time for you to research than you have in the next two weeks. Offer to prepare an extension based on the P&L "as if" it were Schedule C, priced accordingly, with the understanding that the actual return won't be completed before June and will have an additional fee. If she declines, you won't be able to help her at this late date. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 6, 2008 Report Share Posted April 6, 2008 Yes, currency trading isn't usually on either; if the proper elections are made its on another form entirely (which one has conveniently slipped my mind) but it is for 'something, something and straddles'. so if you type 'straddles' into the forms selection box, you'll find it. Then you get to reseach these things deeply. definitely too late in the season to do in any depth. Quote Link to comment Share on other sites More sharing options...
Julie Posted April 7, 2008 Report Share Posted April 7, 2008 Looks like a 6781? "Straddles" didn't work. So why am I looking up stuff for other people at 12:15 am April 7? I have no idea. Don't want to do my own work, I guess. Yes, currency trading isn't usually on either; if the proper elections are made its on another form entirely (which one has conveniently slipped my mind) but it is for 'something, something and straddles'. so if you type 'straddles' into the forms selection box, you'll find it. Then you get to reseach these things deeply. definitely too late in the season to do in any depth. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 8, 2008 Report Share Posted April 8, 2008 Yeah, that's the one. Why am I reading this stuff since I decided an hour and a half ago that I'd take a break, have some dinner, and see if the burnt crumb that was once my brain will jump start again. Quote Link to comment Share on other sites More sharing options...
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