boblink
New Member
Cash: $ 1.10
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Joined: 13 Oct 2008
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| Accounting Software |
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Hi, I use Quicken and MSMoney to keep track of investments and either TurboTax or Taxcut to prepare tax returns, my question is, I am looking for Small Business Accounting / Bookkeeping software program that I can use to "kep the books" (Balance Sheet, I&E Statements, .....).
I am a "one man operation" and am not for argument sake assume that I am a Day Trader, so 99% of my entries are going to be Buying & Selling stocks, options, Mutual Funds, bonds,.......
I looked at Quickbooks but it is geared to Sales, Inventory,... and other tasks that I do NOT need and was wondering if anyone can suggest a good software package that I can use to "keep the books' of a Limited Partnership?
Thank you for your help.
Bob
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Fri Jul 24, 2009 2:29 pm |
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coaster
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Location: Wisconsin
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I don't think you'll find any general-purpose accounting software that will accomodate the special requirements of traders. I've done some trading from time to time and I just do all the accounting in a spreadsheet. However, you might check with your broker or prospective broker(s). I did a quick scan through the ads in SFO magazine and I think that some of the broker trading platforms have built-in accounting capabilities that might be more suitable to your needs.
PS - I don't know what size trading operation you're going to have, but I'd suggest that if you remain a "one-man" operation, an LP is not the way to go.
~Tim~
Eye Candy : Why Whimsy
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Fri Jul 24, 2009 4:48 pm |
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boblink
New Member
Cash: $ 1.10
Posts: 5
Joined: 13 Oct 2008
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| Accounting Software for LP that "trades" equities |
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Thank you for getting back to me Tim, I set up the LP mostly for protection (liability) and estate planning purposes and the PS has 3 partners (myself, my wife and another relative) but I am the only active participant. I transferred all my stocks and bonds into the PS and usually have less than 50 "trades" a year which I easily mange with Quickbooks. The "problem" is that Form 1065 requires a Balance sheet and I am looking for a program that I can use for this purpose. I never thought of broker trading program although I think it's overkill with the limited activity that I have but certainly something to look into. Any other thoughts / ideas / suggestion / ...., would be graetly appreciated.
Thanks,
Bob
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Fri Jul 24, 2009 6:10 pm |
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coaster
Senior Advisor
Cash: $ 1318.80
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Joined: 11 Oct 2005
Location: Wisconsin
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Bob - I'm afraid 50 trades a year will no longer qualify as trader status in the eyes of the IRS. You might have come by that number based on outdated information. Enclosing your trading entity in a legal structure makes no difference to the IRS; as you say, it's just for liability, and BTW wouldn't an LLC provide more protection? Aren't partners liable in an LP? I dunno; hope you have legal advice  Though as far as the tax differences, I can't say; I suppose as long as you're just filing as an LP and not trader status then it probably doesn't make any diff. I'd suggest getting the latest edition of Ted Tesser's book, "The Trader's Tax Solution." There are also some pubs, reports and abstracts of IRS case rulings on the IRS website. They tightened up the qualifications several years ago. Now they're looking not only at how many trades, but how much time you spend, and it has to be documented. I think you can still take the mark-to-market election. The trader status affects mostly what you can deduct as expenses.
Caveat -- it's been some years since I've been up to speed on all this; please do check the IRS website and/or your own legal counsel.
~Tim~
Eye Candy : Why Whimsy
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Fri Jul 24, 2009 11:24 pm |
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boblink
New Member
Cash: $ 1.10
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Joined: 13 Oct 2008
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| Don't consider myself a Trader |
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Hey Tim, thank you again for your your thoughts, I hope that other people will view this thread so that they can get a better understand of how to handle a situation like this. For information purposes, I don't consider myself a "trader", I just used the term because I thought it would be the easiest way to explain what the LP does and fyi, I also have a "S" Corporation.
I did not know that their were tax ramifications for "Day Traders" and frankly don;t care because it's nothing that I ever would do for a living.....a long term investor would describe me.
I need to complete Forms 1120S and 1065 and they require a Balance Sheet so I was looking )hoping) for some off the shelf software that would do this for me and after doing a little (very little) research, I was surprised that no such program is available. I'll look into the Tesser book and appreciate your help.
Bob
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Sat Jul 25, 2009 12:07 am |
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coaster
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Cash: $ 1318.80
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Location: Wisconsin
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Actually, the "ramifications" are favorable treatment as per tax code; that's why the close IRS scrutiny. Sounds like you'll have no problem.
If you find some accounting software that works for you, would you mind posting it here? That's the kind of info I never know I might need down the road sometime.
~Tim~
Eye Candy : Why Whimsy
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Sat Jul 25, 2009 6:37 am |
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