investment expense related to Stocks Sch D

[stech]

I have 1099-B for Sch D, which is for capital gain in stocks. I also have expenses related to these stocks (not losses). These are online subscription I paid for. Where do I enter this? 

[Mike9241]

Nowhere for federal since such expenses are no longer deductible except for investment interest expense. your state may allow such a deduction which is entered through federal schedule A in the section for state expenses only

[stech]

Will opening an LLC for stocks help me do this?

[JotikaT2]

No, it would not if these are personal investments. 

The only time you would be able to report the expenses on a return for an LLC would be if the investments are in the business's name.  But be aware, some states do assess additional taxes on the gross receipts of an LLC and charge an annual fee.  You would need to evaluate if it would even make sense based upon your state and your intentions with the LLC.

[stech]

I do plan to open an investment account under my LLC. I’m aware of my states laws on LLC. Just need to know where would my income go on Sch C, once I get 1099-B under my business name

[Irene2805]

You can enter the investment income on your Schedule C as Uncommon Income. 

1. When you are on the screen for your business, click the box Add Income for this work.
2. On the next screen, Let's enter the income for your XX work mark the radio button next to Uncommon Income.
3. Enter the income and description on the next screen.  If you need more lines, click Add Another Row.  [See screenshot below.]

@stech

[Bassman252]

You indicate one cannot deduct anything on the Federal income tax for investment advice from online subscriptions specifically. What is your source of that information?  The TurboTax Premier "On Demand Tax Guidance" under "What paperwork do I need for retirement and investments says I'll need:

"-Statements showing amounts paid for investment advice
-Receipts for safety deposit box rental fees
-Receipts for investment-related books or magazines"

Which is correct?

[Bassman252]

Mike9241

You indicate one cannot deduct anything on the Federal income tax for investment advice from online subscriptions specifically. What is your source of that information? The TurboTax Premier "On Demand Tax Guidance" under "What paperwork do I need for retirement and investments says I'll need:

"-Statements showing amounts paid for investment advice
-Receipts for safety deposit box rental fees
-Receipts for investment-related books or magazines"

Which is correct?

[RaifH]

Investment expenses, not including interest, are no longer an eligible deduction. They used to be an itemized deduction if they exceeded 2% of your AGI. TurboTax will still track your personal investment expenses if you enter them. They will not impact your federal or state returns.

You can still deduct these expenses if you are self-employed as a trader and the online subscriptions pertain to your business investments, not your personal investments. These will be recorded on Schedule C along with your other self-employment expenses. 

The IRS has a tax topic differentiating personal investing from professional traders. 

@Bassman252

[Bassman252]

RaifH

Thanks!! Very helpful!!