What are the tax deduction limits for a normal trader as opposed to a professional trader?
by 
SunnyW
ANSWERS: 1
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What do you mean normal trader as oppsed to professional trader? If by normal trader, meaning you're an individual using a service like E-trade to make your stock selections, then you have no deduction under IRS regulations for this except those you would normally have filing an individual tax return. Professional traders? There are no such things, but ifyou're speaking about registered representatives, commonly and mistakenly called stockbrokers who are licensed to conduct and engage in transactions on one of the exchanges (NYSE, AMEX, etc) then normal business deductions would apply in those situations. Among the many things I've done in my life, being a registered representative and doing a stint in a specialist union on the NYSE, from experience, there is no special deductions offered any of us for just trading. In fact, I found I had less deductions at tax time for the time I was on the floor of the exchange than I did when I was a registered representative not trading.
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