Can I Deduct Computer and Software Costs if I Don't Have Trader Tax Status

Discussion in 'Taxes and Accounting' started by Cyrix, Jun 27, 2019.

  1. Cyrix

    Cyrix

    If I don't have Trader Tax Status, can I deduct my trading costs such as computer, books, and network costs against my investment income?
    Thanks.
     
  2. Big AAPL

    Big AAPL

    no
     
    dealmaker likes this.
  3. Just open a trading education business and write them off against that instead. Lease the equipment back to you for $200/year.
     
  4. If you want to deduct those items, operate from a "C Corp". (Hoops to jump through, of course.)
     
  5. Cyrix

    Cyrix

    That will incur higher costs than the tax % * my computer, because I am in CA.
     
  6. Like I said, "hoops". Must evaluate the benefit vs. "costs + hassle" to determine whether it would be worth it.
     
  7. FWIW, tax advantages of futures are lost with a C-corp.