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The Top 20 Tax Deductions For Day Traders

Tax Season after Tax Season it amazes me just how many tax deductions traders miss!

We’ve compiled a list of the most common tax deductions available for a trader who qualify for trader status.  Please note that the IRS has an entirely set of different rules for traders classified as “investors”.

This list is meant as a guide and if you have questions about taking a deduction, please feel free to schedule a consultation.

  • Chat or trading room subscriptions
  • Data feeds
  • Software subscriptions
  • Newsletters & newspapers
  • Trading books & publications
  • Cell Phone
  • Internet service
  • Seminars (including transportation & lodging costs)
  • Webinars
  • Wages paid to family members
  • Rent (if leasing office space)
  • Home office deduction
  • Cable fees
  • Computer & Office Supplies
  • Computer Trading Stations
  • Computer Software
  • Depreciation Expense on all Section 179 Assets.
  • Margin interest / Locate Fees
  • Legal Fees / Incorporation Costs
  • Tax preparation & consultations