Thanks @ColeenD3 !! this link has a little bit more detail from expert AnnetteB6:
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/as-a-stock-trader-with-home-offi...
Basically what I did: (I'm not a tax expert, CPA nor a financial advisor - I just followed instructions)
1) You need the CD/downloadable software that is for "home & business".... there's no other way to do this online...
2) If you qualify for TTS, you have capital gains, but you didn't select MTM for 2021? no worries, import your 1099B, it'll be added to your schedule D. NOTE: there's a 3K transaction limit on turbo tax, if you exceed this then select "I'll enter a summary for each sales category". Add total proceeds, cost basis, and your wash sales (adjustment code W) to show your capital gains.
3) Go to your business section and add all your expenses. Do not add any sort of income since your income is already on your schedule D
4) You'll get stuck under your home office expenses where it tells you that the simplified method of deduction of $5 per sq. ft. isn't allowed because you don't have income listed. and if you add income your taxes owed sky rockets cause it's double taxing you.
5) To fix this, open up forms > click on form 8829 > scroll down to the box titled "line 8 calculation smart worksheet" - and on line C2 "adjustment to calculated gain": type in your short term capital gain. You can find this on your from your schedule D form line 7. If you have long term & short term, then calculate out the long term gains and only add the short term since long terms don't make you a TTS trader.
6) Hit enter and go back to "step by step" > your business > you will see that now you can deduct your home office expenses using the simplified deduction method of $5 per sq. ft.
I hope this helps. It took me days of research and reading through forums to find this answer - I hope Turbo tax can make this EASIER going forward for those TTS not on MTM with capital gains.
