Two tax questions

Shadetree42 · Oct 16, 2017

1) For an individual trader (trader tax status, but no entity), can health insurance premiums be deducted in any way? Assume filing single, no entity, no income other than trading income reported on Scheds. B and C.

2) For the same situation (trader tax status, no entity, income from stock/ETF trading only), does the NYC-residing taxpayer need pay the NYC Unincorporated Business Tax?

Please only answer if you know for certain. Thanks.

Shadetree42 · Oct 16, 2017

On Green's site, it implies that premiums may only be deducted if you have an entity. I have heard this is not the case from others. Hence, the question.

interdim · Oct 16, 2017

Instead of asking a question on a forum hire a professional for help. I just got hammered for taxes from a 2014 return, a very unpleasant surprise. Do not rely on information you may find from an internet search either.

Shadetree42 · Oct 16, 2017

Yes, the issue is that when different CPAs give different answers, one is forced to seek more opinions.

comagnum · Oct 16, 2017

This outfit has a lot of good press for traders tax info.

https://greentradertax.com/top-10-tax-deductions-for-active-traders/

Shadetree42 · Oct 16, 2017

As stated earlier: "On Green's site, it implies that premiums may only be deducted if you have an entity. I have heard this is not the case from others. Hence, the question."

Looking for an answer from a CPA or someone who has received direct info. from a CPA on these two topics.

Stocktracker · Oct 16, 2017

Pick up the phone and call the IRS! :banghead:

MoreLeverage · Oct 17, 2017

Shadetree42 said:
2) For the same situation (trader tax status, no entity, income from stock/ETF trading only), does the NYC-residing taxpayer need pay the NYC Unincorporated Business Tax?

Please only answer if you know for certain. Thanks.

"For certain" you would need a professional opinion, but here's something that suggests the answer to #2 is "no" if you're only trading for yourself.

http://www1.nyc.gov/assets/finance/downloads/pdf/99pdf/004767rd.pdf

sprstpd · Oct 17, 2017

Stocktracker said:
Pick up the phone and call the IRS!

From my experience, the odds of getting a question answered satisfactorily from the IRS is around 25%.

sprstpd · Oct 17, 2017

Shadetree42 said:
1) For an individual trader (trader tax status, but no entity), can health insurance premiums be deducted in any way? Assume filing single, no entity, no income other than trading income reported on Scheds. B and C.

Form 1040, Schedule A, line 1 is where you would include health insurance premiums. Your total medical expenses must be greater than 10% of your AGI before you receive any benefit.