Bottom line is, if you file a SCH C for income/expenses incurred with a qualified foreign exchange program, you can expect to be audited. Generally, that won't occur until 24-36 months after the return is processed. Chances are high that you will lose on that front too. But since I'm not a federal judge with the powers to define and interpret federal tax law and apply that definition and interpretation to your specific claim, I'm in no position to state what the definitive outcome of such an audit would be.
This forum is for the purpose of assisting TurboTax users with the use of the TurboTax program and to assist as best we can with the interpretation and understanding of tax law. If that interpretation is not what the poster wants to hear, then so be it.
