Can a stock trader claim expenses?
By Hank Bulmash | April 16, 2011
I am a professional stock trader employed by a firm in Ontario. I need to know if I can write off any of the following expenses: I gross $40,000 / month, the expenses are: a. exchange trading fees $4,000, b. trading platform $1,000, and c. news service $500. So net is $34,500 / month, now, the firm and I split the profit 50 / 50, so I get $17,250 before tax. Now, when I get my T4 is shows income of $17,250.
Can I claim 50 per cent of the abc expenses listed above? Or have I not actually paid them, but rather the firm paid them?
Hank Bulmash answered:
The company has already paid the expenses before your profit split. You can't claim those expenses, they're already being claimed by the company.