Can fidelity margin interest be deducted as a business expense for cryptocurrency traders?

3 answers

• May 06, 2022 · 3 years ago
  Yes, fidelity margin interest can be deducted as a business expense for cryptocurrency traders. According to the IRS, if the margin interest is incurred in the course of conducting a trade or business, it can be deducted as an ordinary and necessary business expense. However, it is important to keep accurate records and consult with a tax professional to ensure compliance with tax laws.
  389

  195
• May 06, 2022 · 3 years ago
  No, fidelity margin interest cannot be deducted as a business expense for cryptocurrency traders. The IRS considers cryptocurrency trading as an investment activity rather than a trade or business. Therefore, margin interest expenses are treated as investment interest expenses, which have different tax treatment. It is recommended to consult with a tax professional for specific guidance on deductibility.
  407

  136
• May 06, 2022 · 3 years ago
  As an expert in the cryptocurrency industry, I can confirm that fidelity margin interest can be deducted as a business expense for cryptocurrency traders. This deduction can help offset trading costs and reduce taxable income. However, it is always advisable to consult with a tax professional to ensure compliance with tax regulations and to maximize deductions.
  363

  91