Stock trading

Forum|Forum|5 years ago
June 18, 2021
2 replies
13 views

I have paid several thousand dollars for charting program expenses and for market news letters this year. Are these deductible expenses and if so, how do I enter them into my TurboTax Premier program? My market profits greatly exceed these expenses.

Thanks

Txcolonel

Bsch4477

Level 15

Those expenses are not deductible unless you are a professional trader.

noidaubachu

Level 2

Can you clarify how one is classified as a professional trader/investor?

Bsch4477

Level 15

To be considered a trader, you must meet all of the following conditions:

You must seek to profit from daily market movements in the prices of securities and not from dividends, interest, or capital appreciation.
Your activity must be substantial.
You must carry on the activity with continuity and regularity.

Opus 17

Level 15

After tax reform the only investment expense that is deductible is interest you paid on money that you borrowed to invest elsewhere, and only up to the amount of income produced. Other fees are no longer deductible.