Traders are used to seeking out the best ways to build their portfolios. But that same financial savvy can be used to save money off your tax bill.
If you trade stocks for a living, you’re entitled to write off business-related expenses, lowering your overall tax bill and leaving more money to invest in your future. Whether it’s trade journal subscriptions or financial consulting services, these ordinary expenses can be put to work for you. No trade-offs required!
Schedule C, Box 17
Fees for professional financial advice are tax-deductible.
Schedule C, Box 18
Deduct anything you buy for your office, like pens, binders, folders, printer ink, or a whiteboard.
Schedule C, Box 27a
Any subscriptions to trade journals related to your industry are considered tax write-offs.
Schedule C, Box 27a
Write off books, publications, databases, and other reference materials you buy or subscribe to.
Schedule C, Box 17
If you pay an accountant to track your trading, income, and expenses, you can deduct their fee.
As a day trader, you benefit from being self-sufficient: scheduling meetings with a mentor you can learn from, or making office supply runs to ensure you have what you need to do your job well. If you drive for these or other work-related purposes, you can claim car expenses on your taxes.
Schedule C, Box 27a
Parking for a meeting downtown, or any other work trip, is tax-deductible!
Schedule C, Box 27a
A toll while driving to or from a work destination is tax-deductible!
Schedule C, Box 13
If you buy a new car, you can write off part of the cost every year for five years.
Schedule C, Box 22
Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.
Schedule C, Box 15
Car insurance monthly fees, registration, even roadside assistance are partially deductible.
Schedule C, Box 9
Oil changes, repairs, and regular checkups are all tax-deductible if you drive for work.
Going to a restaurant for a chat you're hoping will turn into a referral, or meeting with financial planners or fellow equity traders to chat about industry trends over dinner both count as work-related business expenses.
Schedule C, Box 24b
If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off!
Another write-off that belongs on your Schedule C? Work-related travel expenses. For example, you may need to train out-of-town for an equities trading conference.
Schedule C, Box 24a
Planes, trains, and car rentals are all work-related travel costs that can be written off.
Schedule C, Box 24a
When you travel for work, lodging expenses such as hotel rooms or Airbnb are write offs.
Schedule C, Box 24a
When you're traveling for work, all meals are tax-deductible. Even takeout!
The stock market doesn't sleep! Whether you work from home full-time or just stay home to conduct industry research and manage paperwork once in a while, you can deduct a portion of your home office expenses.
Schedule C, Box 18
A desk, chairs, lamps, and other home office necessities are all tax write-offs.
Schedule C, Box 21
You can write off up to $2,500 for individual repairs to your property.
Form 8829
Gotta keep the lights on in your home office! A portion of your electricity bill counts.
Form 8829
Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.
Form 8829
It'd be hard to work in an office without running water, huh? You water bill counts.
Schedule C, Box 25
Your Comcast bill is a tax write-off. You need internet to do your job!
