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I wanted to start trading options in 2017 and incurred start…

I wanted to...

I wanted to start trading options in 2017 and incurred start up expenses such as education. However I did not feel I was ready to begin trading in 2017 and have no income to show. Question. In 2018 I expect to show an income and want to write off all expenses for 2017 & 2018. Is this permitted?

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

I believe the important facts have been presented. The issue is can a prior year expenditure be written off in the year of income?

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Answered in 12 minutes by:
3/18/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
Experience: Adjunct Professor
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Hey! I'm Carter, I'm a CPA and can help you out.

If you're running it as a business, you can deduct it as a startup expense. You can deduct $5,000 of the expenses and then you need to amortize any costs between $5,000 and $50,000. Once you cross $50,000, the amount you can amortize goes down and you cannot deduct anything besides the amortization if you have more than $55,000 of start-up costs.

Let me know if you need anything else. If not, please leave a rating. Thanks!

Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
Experience: Adjunct Professor
Verified
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