Can you write off Ameritrade trade fees from your taxes?

You can still write them off.

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by Adz3r0 on August 10th, 2009

Oh, I'll be in the clear! But thanks for clearing that up!

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by Adz3r0 on August 10th, 2009

WOW. My friend, you just got 30 points for that one. ;D

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by Adz3r0 on August 10th, 2009

a 'portion of your computer'...the computer would have to be put on a depreciation schedule, with the appropriate business percentage, and I don't think the 'average' person is going to know how to do this. Having your tax professional do it is going to cost you more than what you'll gain in write off IF you get any at all!

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by Sherri on August 10th, 2009

I've done it by only answering a couple of questions using "TaxCut" software from H&R Block, it's inexpensive software and handles all the tricky stuff.

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by ThorThpot on August 10th, 2009

THAT is scarey! IRS Pub 17 says: "Investment Fees and Expenses-You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income." I wouldn't call a computer an 'other expense'. Just because a software asks the question, it isn't necesssarily right and 'gospel'!

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by Sherri on August 10th, 2009

I don't know why you think it's scary.
"If you use a home computer and peripheral equipment to manage your investments, you can depreciate the investment-use portion of the cost using the straight-line method - 10% in the first year, 20% in years 2 through 5 and 10% in year 6. Like other investment expenses, the depreciation is "thrown in the pot" with your other miscellaneous itemized deductions and is then subject to the 2% of AGI and itemized deduction phaseout rules.

Purchased software used for investment management can generally be written off over three years (or earlier if it becomes worthless). However, programs that are useful for one year or less should be fully written off in the year purchased."
-http://www.gainskeeper.com/us/articles/WritingOffYourInvest.aspx

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by ThorThpot on August 10th, 2009

and just how did you calculate the investment use portion of your computer? And does the program tell you that if you sell the computer, you may have a recapture to do and/or a capital gain/loss to report?

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by Sherri on August 10th, 2009

Does Turbotax use the depreciation schedule thing?

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by Adz3r0 on August 10th, 2009

The IRS asks that you reasonably estimate the division of use. Surely you can't think that they're going to argue you used it 22% of the time while you say it was 24%? And I would guess that Turbotax handles the same things, though I don't use that program.

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by ThorThpot on August 10th, 2009

AND are you now telling me that of 24 hours in a day, you are using your computer 6 hours EACH and EVERY day to check stock prices? If so, I have a bridge I'd like to sell you!

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by Sherri on August 10th, 2009

Thanks all.

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by Adz3r0 on August 11th, 2009

Sherri, Sherri... If I say I use my computer an AVERAGE of 4 hours per day, and an AVERAGE of 1 hour is used on my investments, I claim a deduction of 25%, and the IRS doesn't question it; it's simple. Why would they? It's reasonable, it's appropriate use, they don't expect you to hire someone with a stopwatch to time you and see what website you're looking at each minute of each day. (But if you DID hire such a person, you'd be able to deduct THEIR salary too, lol)

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by ThorThpot on August 11th, 2009

DUA = Deductible Until Audited!

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by Sherri on August 11th, 2009

I'm going to go with Thor, while preparing for an audit. People are too afraid of Audits. If it happens, it happens. I'll just give the money back. I wouldn't be doing anything illegal as far as I'm concerned.

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by Adz3r0 on August 11th, 2009