How Traders Can Save $5,000 A Year **Wating on vid**

Robert Green is a certified public accountant and the founder of Green NFH, LCC, a tax and accounting firm focused on traders, investors and investment management businesses.

Green recently joined Benzinga’s #PreMarket Prep to talk about ways that traders can save thousands of dollars a year through how they file for taxes.

Related Link: 3 Things That Affect Trading Performance

In 1997, Green explained, Congress changed laws to say that traders can write off losses as ordinary business losses.

If individuals do want to trade as a business, Green suggests making about 1,000 trades a year.

“That’s about four trades a day four to five days a week,” he said. “That’s a lot of trading.”

But, Green said, people who do trade at that level can be considered a business and take advantage of business expense deductions including for education, equipment and a home office.

Furthermore, he said it’s better to conduct that business in an entity, where traders can then also arrange to have employee benefit deductions like health insurance and retirement planning.

“Added all up, the business expenses save you $5-10,000 a year,” Green said. “The employee business deductions save you another $3-10,000 or more per year.”

Green also talked about tax treatment elections and common tax mistakes that traders make.

Check out his full interview here:

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