Tax Deduction Ideas for 2002

D

DisciplinedHedg

Now that tax season is over, it's time to start planning ahead for a profitable but SMART 2002.

What are some of the more common AND uncommon deductions traders here are making?

I think it will benefit everyone here.
 
I would like for people to comment on writing off the home office space. I have heard positives and negatives, and currently my accountant is telling me to do it.
 
Originally posted by Dustin
I would like for people to comment on writing off the home office space. I have heard positives and negatives, and currently my accountant is telling me to do it.
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Just remember that if you do that and you own your home, I think that what you write off needs to be taken off your basis or treated as rent income and therefore almost becomes a wash. If you rent, then I don't think it's an issue.

But, I'm not an accountant.
 
Some stuff:
WSJ
IBD
TASC
Cable for CNBC
Internet Service
Quote Feeds
Trading shows
Travel to Trading shows
Trading Classes & Seminars
Travel to Trading Classes & Seminars
Computer Equipment
Trading Books
etc.
 
Originally posted by cashonly


Just remember that if you do that and you own your home, I think that what you write off needs to be taken off your basis or treated as rent income and therefore almost becomes a wash. If you rent, then I don't think it's an issue.

But, I'm not an accountant.
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Did you sleep in a Holiday Inn last night?

The home office deduction is one of the few old/new gems available. The deduction reduces your basis in the home. In prior tax years when gains on primary home sales were taxable this might be a wash, but since the change in the law that removed capital gains on sale of a primary residence, this deduction is a windfall.
 
What is the best form of trading entity to trade out of? Should you trade as an individual, corporation or LLC? Any comments would be appreciated.
 
Originally posted by TriPack


Did you sleep in a Holiday Inn last night?

The home office deduction is one of the few old/new gems available. The deduction reduces your basis in the home. In prior tax years when gains on primary home sales were taxable this might be a wash, but since the change in the law that removed capital gains on sale of a primary residence, this deduction is a windfall.
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Ohhh.....

Makes sense. I didn't think of that!

Thanks!!!

(unless you don't own your house for at least 2 years, right?)
 
As always do what you want with your taxes, but if you use your home as a home and an office, and you sell the property, as far as I can see the sale is treated as two separate sales. One is the sale of the home, and the second is the sale of the office, where the depreciation is recaptured. This would be the same as renting a room in your house and taking a deduction. The 1997 change does not have any bearing on this.

The second is the use of a Medical Savings Account. This is actually a decent deal, if you elect a deductible of about 1200 to 2500 you can fund a MSA with tax-free money and make tax free withdrawals. The premiums are 60% deductible strait from income, no 7.5% AGI floor.

A good weekend to all.
 
Originally posted by cashonly


Ohhh.....

Makes sense. I didn't think of that!

Thanks!!!

(unless you don't own your house for at least 2 years, right?)
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Yes you have to own the home for 2 years and reside in it more than 6 mos per year to have it qualify as your primary residence and also to have it qualify for no tax on capital gains on sale.
 
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