@ThomasM125 @Mike9241
The "issue" here is not the home office. I have reported this home office for about 10 years. It is a valid home office. This year the MTM trader business was added in. It will share the same home office.
The new MTM trader business has a bigger gain than the expense of the home office, entered in the 4797 Form. The "issue" here is that the TurboTax did not count the gains from the 4797 Form. It only takes the expenses in the business Net Income screen for the MTM trader business. Because of that, the Net Income only shows a negative number of expenses. Because the MTM trader business's Net Income is negative, and also a home office is claimed, TurboTax considers there is a bigger risk of being audited, I think.
But the reality is that the MTM trader business is not a loss business. There are some profits. Why does TurboTax handle it like it is a loss business? This is what confuses me. If an MTM trader business should be handled like this. I am fine to file the current result to the IRS. I hope I can get a confirmation that the TurboTax is correct.
