GTT TradeLog™ with Mark to Market Accounting

GTT TradeLog™ was designed to meet the special tax needs of active traders in securities who have elected or are about to elect the mark to market accounting method with the IRS.   

The GTT version offers all of the same features as TradeLog™, with the addition of GreenTraderTax.com's trader tax knowledge regarding the mark to market accounting method.

Why is mark to market the wise choice for traders?

1. Trading capital losses are converted to ordinary losses and become exempt from the IRS wash sale rule.  MTM traders can deduct their ordinary trading losses against all other types of taxable income without limitation.
2. If a MTM trader has negative taxable income (Net Operating Losses), they can carry them back two tax years to get immediate tax relief (hence the term "tax loss insurance").
3. MTM Traders in securities are exempt from self-employment taxation and they may segregate investment positions to still get long term capital gains rate benefits.

Mark to market is the best of all worlds

If you are a serious trader, you need mark to market:

Per the new trader tax laws of 1997, IRC Section 475(f), "Traders in Securities" (475(f)(1)) and "Traders in Commodities" (475(f)(2)) may elect mark to market accounting (MTM) by April 15 of the current tax year (not after the year ends).   

The main effect of this tax law for traders is the conversion of capital gains and losses into ordinary gains and losses.  Therefore, if you lose a lot of money trading, MTM can save your hide.

For more information about the election, see How to elect mark to market.

GTT TradeLog™ makes your change to MTM easy

When you change your accounting method from "cash basis" to "mark to market", the IRS requires that you make a Section 481 Adjustment at the start of the year of change.  While this sounds challenging, it's a very simple task with GTT TradeLog™.

The software will take you through a series of simple questions at the beginning of the tax year and at the end of the tax year to determine the appropriate type of accounting method to apply.  When you first indicate that you will begin to use the MTM method, GTT TradeLog™ will automatically calculate your Section 481 Adjustment for you and generate a report for you along with your MTM trading Gains & Losses report. 

Our User Guide under the subject Mark-to-Market accounting (GTT TradeLog) outlines how to use these reports to complete one line item per broker on your tax return.  Both reports get attached to your IRS Form 4797.

As you can see, our software makes your change to the Mark to Market accounting method quick and simple.

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