Hi Colleen,
Thanks for your help.
To confirm:
a. Regardless of 475 election, annual trading gains/losses are reported on Sch D and expenses on Sch C. The main benefit with 475 election is that is helps remove $3k cap loss limitation and Wash Sale rule. The election of form 475 should have no impact on deducting business expenses, correct?
b. When preparing Sch C (as the gains from annual trading sales are in Sch D), Sch C shows no income. Therefore, I can't deduct Home Office Expense.
Any way to get around this and would you know why this happens? Should I calculate Home Office Expense and include as Misc Expense in Sch C?
Thanks.
