Most esoteric situations are dealt with through court cases. This is where a specialized accountant like Green is worth his weight in gold.
For you traders whose trading is your sole source of income, are you able to deduct expenses such as market data feeds, training, and costs for running an algo off a virtual server?
Couple of things... 1) By itself, trading being the sole source of income IS NOT qualification for "Trader Tax Status" (TTS) business deductions. 2) By itself, MTM accounting IS NOT qualification (or necessary) for TTS. In fact, TTS is required before MTM accounting would be allowed. Assuming TTS qualified... market data: yes training: yes Algo/virtual server: maybe. Important to understand... https://greentradertax.com/trader-tax-center/trader-tax-status/how-to-qualify/ https://greentradertax.com/trader-tax-center/trader-tax-status/section-475-mtm-accounting/ https://greentradertax.com/trader-tax-center/trader-tax-status/trading-business-expenses/
Nice, thanks. Schedule C is for offsetting business expenses like hardware, software, quote services, professional literature, and so on.
Yep, all that. You can also use the form 8829 to deduct a certain percentage of your home utilities, rent, (and mortgage interest?), etc, I think up to 20%, depending on how much of your home you use for your business activities.
I tried to keep it easy as well by just trading futures, but in hindsight turning away from some other things I thought were good things to do sort of haunt me today for not having done them lol.