i also worked for CPA firms that handled traders that did not make the 475F election. The IRS should be getting form 1099-B. The proceeds on it will differ from the proceeds you report on Schedule D/Form 8949 as will the cost of the securities. HIGHER AUDIT RISK I think. on schedule c you'll list activity as securities trader with business code 523000
I not sure how you could move items to schedule C. if you move proceeds where do you move the cost?
so which presents the higher audit risk. Don't know. But I can tell you that a difference in proceeds reported on 1099B and schedule D usually generates correspondence.
as an aside traders that make the 475f election report there trading on form 4797 which flows to schedule 1 not to schedule c so they also present large losses on schedule C.
The decision is yours.
