The issue is, since Schedule C reports only expenses, the Home Office expense isn't allowed because you are already showing a net loss on Schedule C because Form 4797 isn't reflected in Schedule C. The audit risk meter may not be correct because your trader's business income is reported on Form 4797 instead of Schedule C, which is less common.
You could ignore this risk because if it is flagged, the IRS should recognize you are a MTM trader and should recognize the type of tax return you submitted.
Just to be safe, you may decide not to share the Home Office with your new business if it means lessening your chance for an audit.
@likesky1010
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