It is very sad that most of the profit is taken out by taxes even though I made a profit from FX and virtual currency trading. Is there anything you can do for FX expenses? And for those who say they don’t want to pay extra taxes, I listed what I can do as an expense.
List of items that can be used as expenses
In order to be recognized as FX expenses, you must be able to prove that you were directly involved in FX profits. I specifically listed items that can be recorded as expenses in transactions and that may reduce the amount of tax to be paid.
Book fee
Books for studying FX are likely to be recognized as expenses. In the end, if it contains exchange rate and economic information deeply related to it, it can be used as an expense. Please note that entertainment and sports books cannot be used as expenses.
seminar fee
There is a high possibility that what you used to acquire knowledge about FX can be recorded as a necessary expense. This could include seminars. Along with this, there is a high possibility that you can apply for accommodation expenses, entertainment expenses, and even transportation expenses.
communication fee
If you use a PC to connect to the Internet, you will have to sign a contract with an Internet provider, and if you use a smartphone, you will have to pay the smartphone communication fee. Communication costs are absolutely necessary in FX, so the possibility of recording them as expenses is extremely high.
Writing utensil fee
Notebooks and writing utensils for recording FX transactions are likely to be recognized as expenses. Along with this, printer fees and office supplies can be recorded as necessary expenses.
computer price
There are so many people who trade on PCs as well. In the case of a personal computer, the fee is basically high, so it is better to apply in advance. If it is not shared with family or used for purposes other than FX, it can be recorded as an expense.
software purchase cost
System trade software is only used in Forex, so it can be recorded as an expense. Other than that, if you are using indicator software, etc., you can also use it as an expense. There are also expensive products, so if you drop them as expenses, you can save a lot of tax.
Utility costs
Utility expenses such as rent and electricity bills can also be claimed as expenses if you can prove them. If you reasonably calculate how much of the room is used for FX based on the usage time and floor space, it may be recognized as an expense to some extent.
commission
Of the fees charged by FX, transaction fees collected on ECN accounts can be recorded as expenses. However, the spread is included in the profit and loss amount, so it cannot be recorded as an expense.
How to manage expenses
It would be nice to have evidence to record something like the above as an expense. Please manage expenses with receipts and receipts. This is because you can submit it in case you are asked by the tax office. If you don’t manage anything and a tax audit comes in, you may not be recognized as an expense if you can’t explain what you used.
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