If I post all gains on Sch D & expenses on Sch C, doesn't my Capitals gains get taxed first (only on gain) then comes in my expenses which impacts ordinary income? so Sch C won't reduce my capital gains, but ordinary income
If I post only expense on Sch C for 2 yrs in 5yrs , doesn't that raise red flags, as there is rule If a business reports a net loss in more than two out of five years, it's presumed to be a not-for-profit hobby.
I am day trader & do have over 700+ trades transaction, I don't need or want Market-to-Market status.
Can I post all expenses to Sch C without LLC formationa? I have over $40K gains (no losses 🙂 )
