I am thinking of using Trader Tax Return this year. I no other source of income other than trading or have my own health insurance (no pre tax deduction of premiums yet at any where either employer or via someone else).
My understanding is there isn’t a tax election for claiming TTS. — it’s determined based on facts and assessed at year-end (such as Volume, Frequency and Holding period of trades).
List Trader as profession and Just fill in Sch C and there is code on Sch C (Line B) and I looked up it is 523110 (I think this more of appropriate code for standalone self Traders ? Or there is any thing else one needs to do to claim TTS?
Business Expenses on Schedule C show up as losses and my understanding is they are an above-the-line deduction from gross trading income income? There are no revenue of Sch C for traders as their profits goes to other forms (Sch D for capital gains and Sch B for interest/dividends) and only expenses/deductions goes on Sch C?
What kind of expenses a TRADER can claim as expenses on Sch. C as business expense e.g(please say yes or no on each)
subscription fees,
market data fees,
margin interest,
equipment like computers
Books or education courses related to trading
Things I am NOT sure
Home office deduction e.g if your office and office bathroom is 400 Sq ft in 2000 Sq ft home
then proportion rate size of your office to your total home size (e.g 20% of mortgage, property tax)
What is deduction possibility for Utilities such as Gas, electricity, home insurance and internet and even phone) and what should be rate. Same as office size like 20% in my earlier example?
These days all financial institution require phone as 2 factor , can phone and phone bill be deducted as expense and if yes what proportion? 50% or 20% of total cost?
Can one deduct Health care and dental Care Insurance premium on Sch C?
Thanks
