Record keeping that makes tax season less painful

[Shadow Trader]

Trading profits and losses usually have tax consequences, and the rules vary by country and by how the activity is classified. Scalpers generating thousands of trades a year need records that make reporting possible.

Most platforms export full trade histories. Monthly exports saved in a safe place, along with deposit and withdrawal records, form a basic file. Statements from the broker are the official record, but personal copies help when a broker changes systems or closes.

Useful habits:

1. Export the account statement at the end of every month.

2. Keep a log of deposits, withdrawals and transfer fees.

3. Record the exchange rates used if the account currency differs from the home currency.

4. Note expenses that may be deductible, such as data feeds, VPS costs and software, as local rules allow.

A qualified accountant familiar with trading in the relevant country is worth the fee. General forum advice about tax rarely fits specific circumstances.

How are statements stored, and could a full year of trades be reconstructed tomorrow?