Keep enough evidence to reconstruct both the trading activity and the tax treatment. An annual platform P&L alone may omit basis adjustments, other accounts and payments received outside the broker.

This checklist concerns US tax preparation. Confirm retention and reporting requirements for any other jurisdiction involved.

Trade and Account Records

Save complete transaction exports, monthly and annual statements, acquisition dates, lot identification, quantities, proceeds, commissions and adjusted-basis records. Preserve corporate actions, transfers and corrected information forms.

Reconcile opening positions, transactions and closing positions. If an import leaves missing basis, resolve the missing history rather than accepting a software default. Wash-sale interactions can require records from more than one account. IRS Publication 550

Prop-Firm Payments

Keep the agreement, payer identity, reward calculation, approval, gross amount, deductions and actual bank receipt. Store evaluation, reset and activation receipts separately from payouts. A simulated account history explains programme performance but should not be mistaken for a personal brokerage tax statement.

Record currencies and the conversion method used for reporting. Preserve the original amounts as well as calculated reporting-currency values.

Expense Evidence

For each potentially relevant cost, save date, supplier, amount, invoice, business purpose and any personal-use proportion. Hardware records should include when equipment was placed in service. Course records should describe what was taught and how it relates to the activity.

A receipt does not prove a deduction. Keep the adviser's classification or your supporting reasoning with the record rather than renaming every expense “deductible.”

Elections and Filing Evidence

Retain election statements, filing confirmations, accounting-method forms and the returns they relate to. Keep documents identifying investment securities separately from business trading positions where relevant. IRS Topic 429

Information forms and detailed reporting requirements vary by transaction. Do not assume every trader must report every item on Form 8949: applicable exceptions, summaries and other forms need the correct instructions.

How Long to Keep the Records

The IRS retention period depends on what a document supports. Some situations require longer than the general period; property-basis records may be needed through disposition and the subsequent limitation period. Carryforwards can require supporting records beyond the year they originated. Follow the IRS retention guidance, not a blanket “delete after three years” policy.

Frequently Asked Questions

What if a provider issues no tax form?

Preserve your own statement and payment trail. The absence of a form does not establish that nothing must be reported.

Is a trading journal enough?

It helps explain decisions but may not include the complete basis, payment and tax-adjustment records required for filing.

Should I replace an original statement with a corrected one?

Keep both, clearly labelled, so changes remain traceable. Reconcile the correction to the filed return.

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