investment deductions

[bmaltz]

I purchased the following investment/trading related items in 2007, can any of them be deducted on my income Tax if I do NOT declare full time trader status:

1. an options training course from Spread Trade Systems in 2007

2. technical analysis software

3. trading-related book

4. investment advisory service that provides trading signals to my auto-trade broker

If any of these CAN be deducted, how do I do so?

Thanks,
radar
:confused::confused::confused:

[Ryan Gibson]

Hello Radar,

Your trading expenses would not be deductible unless you meet the classification of a trader.

You may be able to take some investment expenses on your schedule A which is subject to the 2% AGI limitation.

Regards,
Ryan Gibson

[bmaltz]

Within the context of the items mentioned in my question, please define what you mean by "trading expenses" and "investment expenses".

By the way, I purchased your Stock-related tax cd last year but do not recall these items being mentioned. It seems like the CD was geared toward steering us to get classified as having "Trader Status", which I don't think I would qualify for, since I have a full time job in another field.

Thanks,
Ben

[Ryan Gibson]

Hello Ben,

The use of a legal entity would solve the issue of holding a separate job.

As for the expenses you listed, they would be non-deductible. Normally an investor can deduct margin interest so long as they make money.

Educational and other expenses that could be considered related to business expenses would be non-deductible.

Regards,
Ryan Gibson