If you trade on Exness and get a total plus for the year, you have to report it as a profit. Failure to do so will result in an investigation by the tax office. So, I wrote an article about what kind of trade items can be recorded as expenses.
List of items that can be used as expenses
It would be too harsh to say that you have to pay most of it in taxes even though you have worked hard to make a profit from trading. The following items can be declared as expenses if considered necessary for the transaction.
transaction fee
Transaction fees are one of the expenses that can be covered. Foreign exchange in particular can incur fees when buying or selling currencies. There are more, and often a fee is required to withdraw profits from your account. These should be claimed as expenses.
software purchase cost
In order to actually trade, you may purchase software. An example of this is an automated trading system. Others may use indicator software. If you rent the software, you can include the rental fee as an expense.
Book purchase fee
Trading is a high hurdle for beginners. Some of them will buy books and study trading. Book costs and newspaper subscription costs can be recorded as expenses if they are determined to be related to a transaction. Especially if it is related to economics or politics, it will be OK.
Seminar participation fee
This is especially true for beginners who start trading, but when participating in seminars, online salons, etc., the participation fee can be recorded as an expense. The same goes for transportation costs such as trains, buses, taxis, and hotels.
office supplies cost
You can also deduct office supplies needed for the transaction. For trading, you will need writing utensils, notebooks, and printing paper. A notebook or writing utensil is necessary for doing calculations and taking notes of necessary information. Printing paper is required to print transaction data.
Rent/Utilities
In order to trade, it will be an absolute condition to say where to live and utility costs. If you are using a part of your home for Forex trading, you will use the percentage of the area used for Forex out of the total area of your residence to record your expenses. However, if you do not make reasonable calculations, the tax office will tell you.
computer purchase cost
If you have a computer, you can use the full purchase cost as an expense. It can be said that a computer is an essential item in trading, and it is difficult to accurately calculate how much it is used for Forex trading, but in general, it is reasonable to use about 30% to 40% as expenses. .
computer peripherals
Peripheral devices for computers can also be included as expenses in the same way as above. Let’s expense all computer peripherals, such as mice, printers, desks, chairs, monitors, and even keyboards. If you receive an inquiry from the tax office, it is a good idea to save an image of the situation around your computer.
Smartphone/Tablet
Trading is not something that can be done only with a computer. Now is the time to trade on smartphones and tablets. Since smartphones and tablet terminals are items that are also used privately, it is difficult to prove how much you are using for transactions, so be sure to explain properly.
communication cost
An internet connection is required for trading. Internet communication costs are likely to be an expense. However, in the case of internet connection, it is not used only for trading, so there are many people who use it privately. Please consult with your tax accountant to see if communication costs can be recognized as expenses.
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