How to write off trading stocks expenses

[stech786]

I am a day trader for stocks. I trade using robinhood and get 1099 at year-end. Someone told me I could deduct my trading stocks related expenses (e.g laptop, home internet etc). the way they told me is that I would open my own LLC and report my income on Sch D as capital gains/loss then enter all of my expenses on Sch C under that LLC? Is this correct? Wouldn't this make my Sch C at loss every year?

I spent 40hrs 4 weekly trading stocks & have over 800 transactions to proof I am a day trader.

[itonewbie]

You seem to have gotten lost in cyberspace.  For questions related to individual taxpayers, you may like to visit the TurboTax Help site for help instead.  This Community is open only to tax professionals and does not answer consumer questions.

[stech786]

Thanks Google Maps!

fyi - I am a tax professional 

[abctax55]

IF you are a tax professional, do your due diligence & research the issue.  Research mark to market, and what is necessary to 'proof' that you are a day trader, and the required elections that are necessary.

Or ask those *someones that told you* how to handle this complex situation.

[qbteachmt]

"fyi - I am a tax professional"..."and get 1099 at year-end"

But there is no such thing as "1099."

However, there are a lot of different Letters as suffix to "1099" which makes a difference. 1099-B? 1099-Misc? 1099-NEC?? 1099-OID?

In other words, as a professional, you know it matters. Your professional training in tax preparation is supposed to cover this, along with your updates to stay current with the tax regulations. Even if you are not preparing returns for clients, you should have the current info for your own needs. The IRS has all the answers for you on the web.

[stech786]

if you were a professional you would have know if some says they got 1099 from stocks, it would be. 1099-B. They teach you at training!

I shouldn’t have to spell things out for you!

[IRonMaN]

"Someone told me"

"They teach you at training"

The alphabet lady pointed you in the right direction.  If you have trouble following that direction, you could always check with "someone" or "they" for some additional help.

As a side note, the QB lady isn't a tax professional.  Her expertise lies in the world of bookkeeping and Quickbooks.  But unfortunately for the tax profession, she seems to have a lot more knowledge of the tax world than a lot of the "tax professionals" asking questions here.

[abctax55]

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@stech786 wrote:

if you were a professional you would have know if some says they got 1099 from stocks, it would be. 1099-B. They teach you at training!

I shouldn’t have to spell things out for you!

*************

And a tax professional would know that the specifics are *very* important and that using the correct descriptors is necessary.  If your training hasn't taught you that, you should consider a different trainer.

When asking for free help, from a forum of volunteers.... an attitude of "I shouldn't have to spell it out for you!" isn't exactly conducive to receiving much help.  NONE of us *owe* you any answers or assistance.

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[qbteachmt]

"the QB lady isn't a tax professional. Her expertise lies in the world of bookkeeping and Quickbooks"

And business financial management, as well as "user support." QB is a tool, as is Lacerte (which I helped my father use). You will notice I also reply to Windows computer questions, because I have taught Windows. I have a programming background and do some custom integration. Lacerte and QB include database tools, and I access the Intuit SDKs (software developers kits) from my Intuit developer account.

I am a professional in this; I am the person that the CPAs put between themselves and their clients, to help keep the clients up and running and ready for the CPA, to keep the CPA out of the woods and off the front line of fire. That is why I know it is possible you get 1099-NEC, -B, -OID, and even -INT. And I know what matters.

I try to be helpful where I can, since I also learn from so many people here, and this is about the only way I can return the favor.

That's why I encourage people to be precise and give all the info that matters.

[qbteachmt]

Oh, look what I found in the ProConnect Help articles:

https://proconnect.intuit.com/community/individual/help/input-for-day-trader-transactions-per-irs-pu...