In the past year, I purchased a license so that I can use a bot to do automated forex trading for me. I've made USD 10k so far and I have the following question:
Is there anyway I can write off the cost of the license ($12k)? The cost is one-off and I can keep using it as long as I pay the monthly fee ($200). I read that setting up a normal LLC doesn't make the cut, but have to do it with S corp? Will the saving justify the fee of setting it up? and is there anyway I can write off the monthly fees too?
Is my gain under Section 988? My broker is overseas. Most of the trades close within a day or 2 but some can last for a month; they are all spot trades. The reason I ask is $10k gain is after deducting $4k trading loss, so the gross gain is $14k. If not under Sec. 988, does it mean I can deduct only $3k max per year?
Thank you
