@ToddL99 wrote:
Unless you made a "Mark-to-market" election, your investment gains and losses can only get reported on Schedule D and Form
8949.
There are other options have to be considered day trader Sec 429. Thats a different topic. https://www.irs.gov/taxtopics/tc429
See the following excellent discussion from @bwa:
Can you please share the link to that discussion. that user has too many topics & hard to find it.
You would also need to create a separate schedule C (business) where you would report no income, but would deduct margin interest and any other direct costs you may occur. Unlike an investor, these would be business expenses, not itemized deductions.
my only concern is that if I report ZERO income on Sch C & report only expense, that would result in a Negative business income. Is this okay? I have done much of research this, just stuck on this point if I report no income, wouldn't that raise red flags? Day trading is not a red flag, but just curious.
