I guess as a followup question.. (before I have to start paying to SK for your invaluable opinion… 🙂 )…
Would running this trading business as a business (since it is a business) allow me to also take reasonable home office deduction. For instance if I were to run/operating my trading platform/computers/logistics out of one dedicated room, and only that one dedicated room (either at my primary home or a second home for instance)… Could I then deduct a portion of
1) utilities
2) insurance
3) property taxes
within “reasonable” means to conduct such business?
And if so, does it make a difference if it is done out of a primary or second home?
I figure if I’m gonna go through the hassle of doing this, I might as well do other things at the same time.
Correct, no SS portion of the SE tax if your w-2 is already over the SS wage limit. Just medicare, and bonus medicare when earned income goes over $250K. I think that’s .9%.
Also as a bonus, you get to deduct above the line what would otherwise be investment interest expense below the line if you buy anything on margin.[/quote]
.
