turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Ask the Experts All About the Refund! >> Event happening NOW!!!!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Tk44
Returning Member

Investing with your LLC that has nothing to do with trading and eligible deductions

If you invest with profits from your single-member LLC (this business is not a related to trading/investing), can you deduct business expenses that are related to your investing? For example if you have to pay for market feed data to be able to transact buy and sell orders for your investments or if you subscribed to a service that provided stock market information, can these be claimed as a business expense by the single-member LLC? 

My understanding is if your business is for trading then you'd need trader status to write off those things, however if your business is for something non-trading related like say consulting for healthcare providers, but you have a brokerage account in the LLC's name to invest with, can you deduct investing expenses as business expenses because it's not the LLC's main purpose of existing. 

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
ThomasM125
Expert Alumni

Investing with your LLC that has nothing to do with trading and eligible deductions

No, actually the investment income earned should be reported as personal income, not on the business tax schedule. So, you can't deduct the investment expenses on the business tax schedule as the investment income isn't listed there, on the schedule C in this instance. Even if you use business profits to acquire the investments in the name of the business, they are not considered business investments as far as reporting the associated income is concerned.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies