What software do you use to keep track of expenses?

[Billie 0]

What software does everyone here use to keep track day trading expenses? (mostly to separate from personal expenses and for proper IRS tax reporting)

[Carlos M. 232]

Hi Billie,

 

I currently use Mint.com to track all my personal budget and finances. Since all my expenses for trading right now come out of my personal account, I just have a category setup for Trading. Under this category I have sub categories like Trade Ideas, DAS, etc.

 

I can then pull up all transactions under "Trading" and export what I need or get totals of expenses. Very simple process but I am sure there are better ways of tracking this. I need to do a bit more digging on best practices for handling taxes for traders that are doing this full time for income.

 

Carlos M.

[Lee W 82]

I use Quicken to track all of my expenses. Like Carlos, I have everything categorized so I can mark something as a business expense or otherwise. Commissions and associated fees are accounted for by your broker in your cost basis, so I don’t think those need to be tracked. Besides, those don’t get input in your tax filing the same as other business expenses (different IRS form).

 

As it all relates to taxes, this thread may be useful:

Day Trading and Tax Preparation

 

I hope that helps.

[BBT Member 001 27]

Mint.com

[daniel lindegren 27]

I separated my personal expenses from business expenses by trading through an LLC.

Cash flow looks like this:

Speed trader (LLC) -> Bank (LLC) -> Bank (Personal)

I pay for all of my business expenses via Bank (LLC). Trading through an LLC also unlocks other benefits such as health insurance etc, but you have to file as an SCorp to do so.

Edited July 1, 2018 by onosendi