What expenses can be written off?

Discussion in 'Prop Firms' started by Gary Stevens, Dec 28, 2007.

  1. As a trader with a professional trading firm, what expenses can I claim against my profits?


  2. gimp570


    all of your trading expenses...


  3. cstfx


    desk fees, data fees, related education fees, travel (not commuting) fees for seminars and such
  4. Our traders pay virtually everything through their trading accounts. Any "outside" expenses (home office, computers, cable, etc.) they turn in to us in December, and we adjust their K-1 to reflect all this (obviously within reason). K-1 is then "triple net" and they are obviously exempt from FICA (Self-Employment Tax). I'm sure your Firm is doing something similar.

    Happy New Year!

  5. What percent of my household expenses can I assign to "home office" expense?
    Can I write off health insurance?

    Any other "outside" expenses that can be written off?


  6. Maverick74


    You can write off your health insurance premiums too. Do you know if you can also write off your deductibles as well?
  7. john12


    maverick you run a prop firm ? could have fooled me as your information is dead ass wrong. if you're getting a k-1 are you're a retail trader you cannot write off your health ins.YOU MUST HAVE EARNED INCOME TO WRITE OFF YOUR HEALTH INS ARE RETIREMENT
    PLAN. unless you get a 1099 from your prop house( if you are you're getting screwed big time) then you can't write off your health ins. the above can be written off only if you pay social security on earned income.there's so much incorrect trader tax info out there its sad.
  8. john12


    don when you write off your traders expense against there k-1 income is each item itemized on the k-1 so the irs see's it?also doesn't birght have to account for each traders expense writeoff on your income taxes? i find it hard to believe the irs doesn't want to see the writeoff portion of each traders k-1
  9. Maverick74


    Well, you can add your info to the list of incorrect info. No, I do not run a prop firm. Never have. And I have both K-1 and 1099 income. I would venture a guess that 97% of traders on ET are getting 1099's, not K-1's. Be careful with the accusations capadre.
  10. john12


    1099 income from cap gains sch d can't be written off either. only 1099 misc income can be used to write off health ins. so all the retail traders on here who get a sch d 1099 can't write there health ins off
    #10     Dec 28, 2007