can anyone tell me if and how you can wright off the cost of EAs or off set you gains on your income tax?
In my country it's very easy, this may help you. I only pay taxes of profit withdrawals that I do from my Forex account to my bank account in my country. From that withdrawal I pay taxes and the remain is for me.
But to buy EAs I make a withdrawal from my Forex account to my PayPal account and buy the EA. The withdrawal doesn't go to my national bank account, so in my country it doesn't count as profit. To me that's equivalent to writing it off for tax purposes and it fulfills my country's laws.
I am from USA too. Here you go
I am curious how you know the OP is from USA ?
I would assume that he got that from the profile information (provided it is correct)!
Yes...........what Fernando said :)
Yes I see that now. But don't rely too much on this, it's rarely exact as Fernando said.
Though this time it's correct ;-)
Move to a zero tax country.
Here they have a limit and if you stay below you don't have to pay anything.
So i try to stay below.
But i have also looked them up in the past.
British Virgin Islands.
Turks and Caicos.
United Arab Emirates.
I think there are more.
Next element would be the climate i guess.
In Portugal, if you declare your gains as based on Financial Trading, then you will be taxed on your earnings by a simple fixed %Rate (currently 28%), but you cannot declare or write off any losses or expenses.
The only way, to write off the expenses and/or the loss, is if you register as being a type of Sole Proprietor of a Business, but then you have a higher rate (28.5%-48% depending on earnings) and you have to have a Certified Accountant auditing your records and books.
In my case, since I also do Software development, I have both systems in place, but for the trading I use the simple fixed rate% as that benefits me more than using the more complex method.