Tax Disclaimer and Best Practices

The Reports feature helps you organize financial data for tax purposes, but it's important to understand its limitations and follow best practices for accurate record-keeping.

Tax Disclaimer

The Reports page displays this important notice:

Tax Disclaimer: These reports are provided for informational and record-keeping purposes only. They do not constitute tax advice. Consult a qualified tax professional for guidance specific to your situation, jurisdiction, and circumstances.

What This Means

The platform is not a tax advisor. It organizes your data but doesn't tell you:

  • What's deductible in your jurisdiction

  • How to classify income

  • What forms to file

  • How to handle multiple currencies for taxes

You need professional guidance. Tax laws vary by country, state, and individual situation. A qualified accountant or tax professional should review your records and advise on proper filing.

Reports are tools, not final documents. Use them as supporting documentation, not as ready-to-file tax returns.

Best Practices for Tax Preparation

Throughout the Year

Record transactions promptly Don't wait until year-end. Enter income and expenses as they occur while details are fresh.

Use accurate dates Record the date money actually moved, not when you entered it in the system.

Categorize consistently Put similar expenses in the same category every time. This makes reports more useful.

Mark payment status correctly Only mark transactions as "Paid" when money has actually moved.

Keep receipts Save digital copies of receipts, invoices, and statements. The platform doesn't store receipt images—you need your own records.

At Year-End

Review before generating reports

  • Check for missing transactions

  • Verify all payouts are recorded

  • Ensure expenses are marked Paid

  • Confirm dates and amounts

Reconcile with bank statements Compare report totals to your bank records. They should match or be explainable.

Generate reports early Don't wait until the filing deadline. Generate reports in January for the previous year.

Download both formats Get both PDF (for records) and CSV (for analysis) versions.

Working with Professionals

Share reports with your accountant The PDF format is designed to be professional and readable.

Explain the data sources Help your accountant understand:

  • Payouts come from prop firms

  • Challenge costs are evaluation fees

  • How your trading business works

Ask questions

  • How should refunds be treated?

  • Are challenge costs deductible?

  • How do I handle multiple currencies?

  • What additional documentation do I need?

What to Track Beyond the Platform

The platform tracks business cash flow, but you may also need to track:

Personal Trading (Private Accounts)

Gains and losses from personal trading accounts may have different tax treatment than business income. Discuss with your tax professional.

Capital vs. Income

In some jurisdictions, trading income may be classified as capital gains or business income—with different tax rates and rules.

Multi-Currency Conversion

If you trade in multiple currencies, you may need to convert to your local currency for tax reporting. The platform doesn't do this—you'll need exchange rates for tax purposes.

Quarterly Estimates

If you're self-employed, you may need to pay quarterly estimated taxes. Track your income throughout the year, not just at year-end.

Record Retention

Keep records for the period required by your tax authority (often 3-7 years):

  • Platform reports — Download and save PDF/CSV files

  • Bank statements — Document money movement

  • Receipts — Proof of expenses

  • Prop firm statements — Payout confirmations

  • Contracts/agreements — Terms with prop firms

Digital copies are generally acceptable, but check your local requirements.

Common Tax Questions

"Is prop trading income taxable?"

Generally yes, but classification varies. It might be business income, self-employment income, or something else depending on your jurisdiction and situation.

"Are challenge costs deductible?"

Often yes, as a business expense. But rules vary—your accountant can confirm.

"What about failed challenges?"

Costs of failed challenges are typically still deductible as business expenses. You tried; it didn't work out.

"How do I handle prop firm refunds?"

Refunds typically reduce your expense total rather than being separate income. Discuss the best treatment with your accountant.

"Do I need to report private account trading?"

Yes, trading gains and losses are typically reportable. Rules vary significantly by jurisdiction.

Summary

  1. Use the platform for organization, not tax advice

  2. Record accurately throughout the year

  3. Work with a tax professional for actual filing

  4. Keep supporting documentation beyond what's in the platform

  5. Review reports before sharing with your accountant

  6. Ask questions about anything unclear

Proper record-keeping makes tax time easier and helps you understand your business better.

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