Tax deduction for losses


I am not looking for tax advice and I will not consider any responses as tax advice. I am wondering if anyone has ever deducted their losses from Nadex on their taxes. I have looked all over the web and cannot find a simple answer of yes or no or any answer newer than 2014. I am just a regular Joe trying to get things started with my Nadex adventure. I will eventually spend the $$ on a trade savvy CPA but don’t see the reason to drop $200+ dollars just to get a yes you can or no you can’t. Most responses seem to suggest that binary options are just like gambling so no deduction for losses. Thanks for any response!


I’m not a tax professional, soo yada yada yada…

Unless you are going with a full set of itemized deductions and not taking the standard deduction of 12k (ish for married couples) it’s not generally worth it. if you are itemizing deductions then yeah I think you can deduct it but a tax preparer will know better than I (not to be taken as tax advice as im just a dog banging on a computer.)

(By the by H&R block which is free for anyone who made under 60k last year will let you put in any 1099’s you have for free unlike turbotax wich will require you to upgrade to the 79 dollar home business package …not that I mind paying for tax software it just irks me when ya get the oll bait and switch.)


Yes, you can deduct trading losses from Nadex. They are treated like other Section 1256 (futures) income and Nadex will send you a form 1099-B. just enter the numbers from that onto your tax return (Form 6781 and Schedule D) and follow the instructions. Remember net trading losses can be deducted up to $3,000 per year. if you have more than $3,000 the excess amount is carried over to next year.