Question

Writing off software/education costs for trading stocks and crypto

Forum|Forum|4 years ago
April 8, 2022
1 reply
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I made about $5000 in capital gains trading stocks/crypto this year. Can I write off software I used to do this (e.g. Trading View software subscription) or paid educational content (e.g. Patreon memberships to teachers)? I have another self-employment occupation as well, unrelated to trading.

TurboTax Self Employed Online

M

maglib

Employee

@balexh

Sorry, Unless you claim that you are in the business of investments and filing a schedule C and active in the business as a trader (some people do claim this), you can not for federal purposes. That is not to say that it may be possible in some states that it may not be deductible (none that I'm aware of).

If the IRS considers you to be in the business of buying and selling stocks for a profit. You are therefore entitled to fully deduct your trader-related expenses on Schedule C, unlike most sole proprietors, you don’t have to pay the dreaded self-employment (SE) tax on your net profit from trading. IRS info https://www.irs.gov/taxtopics/tc429

Investment Publications & Periodicals - Books and periodicals related to investments and investing. Newspapers and other such publications of general application are not deductible.

Sorry.

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All the best.

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