Deduct Software Expenses?

Discussion in 'Professional Trading' started by ratan961, Feb 8, 2007.

  1. ratan961


    Does anyone know the answer to the following tax question?

    Can an investor deduct expenses associated with investing software? Note: I'm not going to claim Trader status. Just investor.

    -I use TradeLog to create my Schedule D
    -I use CSI's Unfair Advantage for market data
    -50% of my Internet service is used for trading

    Can I deduct these expenses on my Form 1040 Schedule A?

  2. Bob111


    i think you can,if your expences exceed 2% of your AGI
  3. Generally speaking, yes, but the expenses are reduced by 2% of your adjusted gross income.

    Check IRS Pub 590.

    I'm not a tax professional. Do your own due diligence.
  4. ratan961


    Thanks for the info.

    I entered the deductions into TurboTax but they didn't exceed the 2% limit, so it's all for naught anyways.
  5. Set up an entity if you're interested in this. Info at And other web sites as well. But always check with a CPA (and don't trust the IRS website or help line)