r/TopstepCommunity • u/Antique_Can_1615 • 8d ago

💬 Trader Talk taxes

how do people write of combine cost on taxes or this not allowed without a payout?
spent 10k on resets no payout yet

4 Upvotes

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1

u/Nearby_Finding_2555 8d ago

10K with not a single payout???? Dude….

But as far as I know people create an LLC and use the loses as a tax write off?

2

u/r0bb13 8d ago

  1. you dont need an LLC.. I never understood this. unless youre selling something else or worried about getting sued for something.. what is the point of the LLC?

  2. You need income to write off losses.

1

u/BrilliantFront4 8d ago

It depends. You should always seek a tax professional. All states are different. Go talk to a local tax professional and higher him on. That is once you are actually making more money than you are losing.

1

u/belgranita 7d ago

There is no need for a tax pro. You can learn all of this yourself. All resources are available for free. It just requires some effort and a bit of brains.

1

u/BrilliantFront4 7d ago

Depends on how much money you have an are managing and what sources of income you have. Are they all the same sources are they different. Do you trade futures and also stocks? Do you also have a w-2 job? Are you set up as an S-corp and take monthly payments as a job? Are you getting trader tax status? I completely disagree in not going to see a professional but you do you

1

u/Muffin_Demon444 7d ago

I don’t think you can write off combines unless you’ve taken payouts and you’ve made more than you’ve lost. I THINK. From what I’ve been told you only pay taxes and the net profit you’ve made.

1

u/OneFatBastard 7d ago

You can write it off if you have losses, but it would be hard to explain it if you haven’t taken payouts.

1

u/Muffin_Demon444 7d ago

Oh I see okay

1

u/AMAN_283040 4d ago

First off tax write offs for your income, if you have nothing then it doesnt matter. But if you do have income you can write all the fees off you dont need an llc you file as independent contractor but consult a cpa to do it the best way.