No Business Expense Deductions for an Investor

To deduct business expenses, you need to be in a trade or business. An investor is not considered to be in a trade or business. That’s what one investor learned when he tried to deduct legal fees related to an activity in which he functioned as an investor. He was not involved in day-to-day activities. An appellate court said “investing is not a trade or business.” #IdeaoftheDay