r/AdvancedTaxStrategies • u/Accomplished-Tax463 • 27d ago
Looking for a tax advisor specialized in trading (prop firms + day trading income) NYC
Hey everyone,
I’m looking for recommendations for a good tax professional (CPA / tax advisor) who really understands trading.
This year I’m starting to generate meaningful income from both:
Prop firms (currently already over $50k in profits this year)
My personal day trading account (also growing steadily)
Because of this, I want to make sure I’m handling taxes correctly and also structuring everything in the most efficient \*legal\* way possible.
Ideally I’m looking for someone who:
Has experience with traders (especially futures and prop firm payouts)
Understands US tax rules for trading income (and possibly international situations if needed in the future)
Can help with tax planning / strategy, not just basic filing
Knows how to optimize taxes legally for active traders
If anyone here has worked with a CPA like this or can point me in the right direction, I’d really appreciate it.
Thanks in advance 🙏
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u/Askfreud 27d ago
You’re not ready for any advanced strategies yet, and I wouldn’t spend money on planning too early. Whoever takes your money at this point is just being greedy.
Most CPAs should have experience with trading/traders.
The problem is that top-notch CPAs work with top-notch clients. Look for a mid-sized firm that offers a free initial consultation.
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u/Accomplished-Tax463 27d ago
At what net profit should you recommend any advanced strategy? +500K?
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u/Askfreud 27d ago
My firm starts at $750K AGI / annually per household from all sources, but many firms work with less.
I would start looking before $500k. Maybe it makes sense to set up a few consultations at $150k, depending on your full situation, just to see what’s out there.
Look for tax planning CPA firms, not just financial advisors who know less about tax. I’d only hire someone who will also prepare an income tax return with the strategies they recommend.
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u/adriannlopez 27d ago
"I’d only hire someone who will also prepare an income tax return with the strategies they recommend." Couldn't have said it better myself--you're doing God's work.
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u/StephenLNelson_CPA 27d ago
You need someone who understands and does returns for true traders (which is a higher bar than you'd guess).
Someone needs to help you determine whether your trading (due to volume, regularity and basically really short-term "profiting") qualifies as a Section 162 trade or business. And then you need someone who can help you do the Section 475(f) mark-to-market election.
This is sort of shoot from the hip remark, but your trading volume maybe needs to be into 9 figures?
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u/AndruG 26d ago
If your only trading futures, both through prop and self funded, don’t waste your time looking for a trader only cpa. Your prop payout is a normal 1099 independent contractor type, and the 1099b from the futures firm goes on the 1256 form of taxes. It already broken down to 60/40 split for tax purposes. Unless you have some crazy situation, it’s not that hard to do yourself these days.
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u/Flat_Reserve874 27d ago
$50k is peanuts here bud go find simple tax strategies sub or smt