rjs
Level 15
Level 15

Deductions & credits

As a trader you do not report your 1099-B transactions on Schedule C. You report them on Schedule D, the same as if you were an investor. You report only expenses on Schedule C. That's what allows you to deduct investment expenses that would otherwise not be deductible.


I again recommend that if you are filing as a trader you should consult a tax professional. You should also discuss with the tax professional the specific expenses that you want to deduct. In particular, there are a lot of detailed rules regarding deductions for a computer and a home office. The tax professional can also give you guidance as to what other expenses might be deductible.