Day Trader Taxes
📈 Designed for High-Earning Day Traders & Prop Firm Professionals
If you're earning six figures or consistent payouts from a prop firm, you already know taxes aren’t simple anymore. Trading might seem simple on the charts, but when it comes to taxes, things get complicated fast. Many traders—especially those with six-figure profits or prop firm payouts—don’t realize that trading income is treated very differently from W-2 income or even traditional business income. Without the right strategy, you could be overpaying in taxes, missing critical deductions, or putting yourself at risk for an IRS audit.
From misunderstanding the difference between capital gains and ordinary income to failing to elect Mark-to-Market accounting or set up the right business entity, traders face unique pitfalls that most accountants aren’t trained to handle. Whether you’re trading full-time or collecting steady payouts from a funded account, a lack of proper tax planning can eat into your profits and cause unnecessary headaches. That’s why serious traders turn to tax professionals who understand the nuances of active trading—and that’s where we come in.
💼 Who We Work With:
We exclusively work with:
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Traders making $100K+ annually
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Funded prop firm traders receiving payouts
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U.S.-based and international traders with complex tax profiles
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Those looking to treat their trading like a business, not a hobby
If that sounds like you, you're in the right place.
⚙️ Our Specialized Services Include:
✅ Trader Tax Status (TTS) Evaluation
✅ Mark-to-Market (Section 475(f)) Election Support
✅ S-Corp and Partnership Entity Structuring
✅ Tax Planning for Prop Firm Payouts
✅ Crypto, Futures, Options, and Forex Tax Treatment
💡 Why Work With Us
Most tax professionals treat trading income like any other investment—and that’s exactly why traders end up overpaying or getting blindsided by IRS issues. At GenWealth Financial, we specialize in tax strategy for full-time traders and prop firm professionals because we're traders ourselves. We understand the grind, the risk, and the mindset—because we live it too.
We don’t just know the tax code—we know how it applies in real life, on and off the charts. Whether it's properly electing Mark-to-Market status, optimizing your business structure, or planning around prop firm payouts, we give you strategic guidance designed specifically for active traders earning real money. No fluff. No one-size-fits-all answers.
Our edge is experience—from both sides of the screen. With deep knowledge of both trading and taxation, we help high-earning traders stay compliant, reduce their tax burden, and protect more of what they earn. We're not here to file your taxes once a year. We're here to help you build a sustainable, tax-smart trading business that scales with you.
💡 Frequently Asked Questions
❓ Do I really need a tax professional if I just trade from home?
Yes—especially if you're profitable. Trading taxes are complex, and the IRS treats them differently from regular investments. If you're making over $100K or receiving prop firm payouts, proper tax planning can save you thousands.
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❓ What’s the difference between capital gains and Mark-to-Market (MTM)?
Capital gains are taxed when you sell, and losses are limited to $3,000 against ordinary income. MTM allows you to treat all trades as if sold at year-end and deduct unlimited losses. It can be a game-changer—but only if properly elected and reported.
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❓ Can I deduct my trading education, subscriptions, and home office?
If you qualify for Trader Tax Status (TTS), you may be able to deduct these and more. Without TTS, you’re limited. We help you determine if you qualify and how to structure things properly.
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❓I didn’t make much profit this year. Can I still work with you?
We focus on traders earning $100K+ or with consistent funded account payouts. If you're just starting out, our free resources or digital products may be a better fit until you scale up.
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❓Do I need to form an LLC or S-Corp to trade?
Not necessarily, but in many cases it can help reduce taxes and provide legal protection. We evaluate your specific situation and help you determine the best structure based on your income, strategy, and goals. Some of the best trader tax strategies entail having the right entity structuring.
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❓ I already have an accountant—can I just hire you for strategy?
Yes. Many traders work with us solely for tax strategy, entity structuring, or to handle the trading-specific parts of their return. We're happy to coordinate with your current tax preparer if needed.
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❓ What if I trade through a prop firm? Do I still need tax planning?
Absolutely. Prop firm payouts are usually treated as 1099 income, and without a business structure, you could end up paying more in self-employment tax. We help prop traders reduce that burden and stay compliant.
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❓ What if I trade crypto or futures? Do you handle that too?
Yes—we handle crypto, stocks, futures, forex, and options. Each has its own tax rules, and we specialize in helping traders across multiple asset classes stay compliant and optimized.
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❓ I’m an expat or live outside the U.S. Can you still help me?
Yes—we offer tax services for U.S. traders abroad or trading through international platforms. If you’re a U.S. citizen, your trading income is still subject to U.S. tax laws no matter where you live.
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