Exchange traded options accounting software


TradeLog is used by industry leading trader tax professionals. Click here to learn more about our approved service providers. Section contracts include regulated futures contracts as well as exchange traded and broad-based index options. The IRS requires these contracts to be priced or marked to market at year end for tax reporting purposes — this is standard for all taxpayers, no election required.

For proper tax reporting all open year end section contracts need to be closed out at year end prices, a realized gain or loss calculated for tax purposes, and then re-opened using the same year end prices going into the next tax year. The actual trade details are not required, only the totals. All TradeLog versions now support Futures and Section contracts , and include a detailed Section report for accurately calculating the totals for Form tax reporting.

Section f is a special IRS provision commonly called "trader tax status". For proper tax reporting: Timely election must be made, usually by April 15th of the first year elected by a qualified trader. A Section adjustment for change of accounting method must be reported with the first tax year elected. Year end open positions must be marked to market. You can learn more about this method in our Guide to Mark-to-Market Accounting.

This election allows business treatment of gains and losses for qualified active traders. There are many benefits to this election, but there are specific requirements as well. While the Section f reporting needs may sound challenging, it's a simple task with TradeLog software. The software allows you to easily change your accounting method and automates the needed adjustments. Generate the key reports you need, including the Form Details, Securities Marked to Market, and Section adjustment reports.

Many traders who elect Section f seek professional tax services in order to properly qualify and take full advantage of trader tax status. TradeLog is used by industry leading trader tax professionals. Click here to learn more about our approved service providers. Section contracts include regulated futures contracts as well as exchange traded and broad-based index options. The IRS requires these contracts to be priced or marked to market at year end for tax reporting purposes — this is standard for all taxpayers, no election required.

For proper tax reporting all open year end section contracts need to be closed out at year end prices, a realized gain or loss calculated for tax purposes, and then re-opened using the same year end prices going into the next tax year.