Do monthly inactivity fees offset capital gains?

Discussion in 'Taxes and Accounting' started by dalegrief, Dec 16, 2015.

  1. Hi,

    I am wondering if those monthly inactivity fees can be used to reduce my capital gains for my short term capital gains? I am talking about US tax laws.

    BTW, I am not classified as a professional trader for tax purposes. I am just normal investor.

  2. No, but you may be able to take an "expense" deduction for your trading costs.
  3. Thanks, but I can only take those expense deductions if I am classified as a professional trader, right?
  4. no, some legitimate expenses are deductable to all investors private or pro. Traders filing pro report expenses on sched C. Legitimate expenses like advisory fees and I would assume inactivity fees are reported/deducted on sched D. But you can't apply them to short term cap gains only. As a matter of fact I think they are treated just like any other deduction like interest on mortgage or charitable contribution whether you have long term, short term or no cap gains.

    hey man, I'm not a cpa, just trying to help. It is all in there in IRS pub 539, or browse Robert Green trader tax website.
    Last edited: Dec 24, 2015