Health Ins deductibility as a Trader

Discussion in 'Professional Trading' started by hayman, Aug 24, 2003.

  1. hayman


    DISCLAIMER: I do NOT work for the IRS

    How many of you traders file as sole proprietors and deduct cost of Health Insurance premiums on your Schedule C instead of on your 1040 (medical costs which are over 7.5% of your AGI are supposed to be deductible) ?

    The rule is that if you are not paying Social Security Tax (which you do not have to do as a Sole Proprietor and someone who is a non-professional, non mark to market trader), then you cannot deduct Health Insurance costs as a business (Schedule C) expense.

    Are any of you doing it, and if so, how long have you gotten away with it ?

    Just curious, and again, I don't work for or have any relatives working for the IRS :D
  2. Hayman,

    Talk toy Robert Green at the following, he runs GreenTrader Tax and is completly involved in assisting the active trader with questions like this with his CPA firm. His email is; ....Myself and a few of our larger traders use his services. He has really helped us.

    Robert Green, CPA

    rttrader -
  3. jessie


    Create an entity for your trading (I use an LLC), get your insurance through that, and it is generally not a problem.
  4. Foz


    If you are married you can hire your spouse and provide her/him and her/his family (you!) with Sch. C deductible health insurance.