What if you are a day trader (not a long term investor which is not classified as a business). You have an office, and you buy and sell financial products such as stocks and bonds on a daily basis. You use your space solely for executing your online trades, doing research etc. By definition your space meets the IRS home office requirements but your income is reported as capital gains on Schedule "D". Your office expenses are reported on Schedule 'C".
Turbo Tax disallows this. Therefore if you want to take this deduction you have to override an entry on Form 8829 which includes Schedule "D" income which is allowed by the IRS instructions. Although you paid for software that TT advertises you can E-File your return, TT blocks you from E-Filing due to the override. As I said before, TurboTax should not be telling you what you can or cannot do regarding your return. If you choose to override one or more entries, then TT should have a screen that you check off that you understand your return is no longer covered under the TT accuracy guaranty.
