Hi,
I want to thank everyone who has responded. Here is what I did and feel very comfortable.
Until a trader requests the mark to market election, which they may never decide to do, all of their trades ultimately end up on the Sch D, the wash sale rules apply and they are limited to the $3000/yr loss.
The expenses they may have like subscriptions. software, hardware, etc go on a Sch C. Securities traders are not subject to SE tax on net income and they may qualify for OIH deduction despite not having net income on the Sch C.
On Part II of the 8829, line 8 calculation smart worksheet, line C, is where you will put the net profits, if any, from Sch D so the OIH deduction will be allowed. I didn't see this at first as I have a bad habit of skipping over the worksheets.
I hope this helps!
