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Let’s talk about trading and taxes.
This is the second installment in our series, “Trading As A Business.”
In the first installment, we talked about the seven things that you need to start trading as a business.
In part two, we’re going to cover how you can set yourself up to have your taxes work in your favor.
So take a deep breath and I promise by the end you’ll feel much better about everyone’s least favorite “t” word.
Trading Taxes
It’s actually more fun than it sounds. There are some really cool advantages when the IRS recognizes you’re trading as a business.
So before we get started, full disclosure, I am not an accountant and I’m in no way qualified to give you any legal advice or money-saving advice.
This is my opinion and what I have personally experienced.
I’ll give you some resources where you can talk to professionals who know what they’re doing.
When your trading is recognized as a business, you can deduct expenses (like said professionals) from your trading income.
What are the expenses you can deduct for trading taxes?
First, most traders aren’t working out of an office they’re renting somewhere. The vast majority of traders out there (like me) are trading right from the comfort of their homes.
