Are there any deductions can be applied to investment activities?

Question

I began operate options trading through LLC. If I will not elect to become "professional trader" on my tax return at the end of the tax year - I will not be able take any deductions (subscriptions, seminars, losses & etc)? Sincerely, Euge

Answer 1

If you're referring to american federal income taxes, commissions usually add to your cost basis and reduce your net proceeds, which reduce your capital gains taxes. If advice fees and those other things are more than 2% of your income, I do believe you can write them off as well.

You really should ask a tax professional instead of a broad bulletin board with no accountability.

If you agree, gimme a thumbs up! Thanks.