This thread is enlightening but has presented 3 alternatives that make it confusing as to what the right method of reporting in TurboTax online edition is. This is a sample example with random but relatively correct values:
Have capital gains from *investment* activities: $5k
Have capital gains from *daily trading* activities: $50k
Have capital loses from *daily trading* activities: $20k
Have business expenses for *daily trading* activities: $20k
Want to additionally get home office deduction for the *daily trading* activities (unknown at this point but let's consider both cases when it's less or more than the "profit" from the daily trading considering all other expenses).
Additionally, it looks like there should be no self-employment tax for *daily trading* business activities, per Tax advice for clients who day-trade stocks:
"Although a day trader who qualifies as a trader in securities is considered as being in the business of buying and selling securities, the trader is not subject to self-employment tax on gains and losses on his or her sales of securities."
Given all of the above:
@Anonymous_ what is the correct way of reporting these in TurboTax online and ending up with correct calculations?
Thanks.
