permissible deductions?

Discussion in 'Professional Trading' started by msushi, Mar 25, 2011.

  1. msushi


    For a profitable trader who qualifies for trader tax status and if needed creates an entity, would these items be fully deductible with no limit?

    -venture capital losses

    -educational expenses - enrolling at a local university for a degree in finance (maybe an mba as well)

    thank you
  2. No on the college degree, yes on training seminars.
  3. msushi


    i see, no go on the college degree even if it is part time and has some relevance to trading? thought i was clever by thinking of that but i guess not :D
  4. An MBA has absolutely nothing to do with being a Pro Trader...
    You may as well try writing off French History courses.
  5. msushi


    haha it was worth a shot. trying to get as many deductions from trader tax status as i can :cool:

    thanks guys
  6. msushi


    would the certificate courses at NYIF be eligible for a tax deduction?
  7. the1


    I recently had a client with a very similar situation. He was a dentist who testified as an expert witness for additional income. He decided to pursue a Law Degree but the deduction was disallowed because it wasn't related to his primary business.

    Since you have trader status and you're taking classes that pertain to trading they are probably deductible. If I have time I will try to find primary support for this deduction a little later. My weekend is packed so maybe on monday.
  8. msushi


    thank you the1. please let me know whether a finance degree (and possibly an mba) are able to be deducted. have a nice weekend!
  9. msushi


    could I also start an unrelated business and use those losses to offset my total tax obligation with no maximum?
  10. nkhoi

    nkhoi Moderator

    recently a stripper was able to deduct her plastic surgery for a oversize pair of balloons. But only after they went to court and IRS lost.
    #10     Mar 26, 2011