that is in fact my question. Where do you report the gains from trading? If I report the gain on the schedule C, then Turbotax computes the self employment tax. If I report the gains using the schedule D, then it becomes capital gain. I have trading expense that can be offset with the trading gain. I was advised from the turbotax professional to report the expense on schedule C and all other trading activities on the schedule C to effectively bypass the self employment tax. But then, the trading gain becomes the capital gain. How come the expense is classified into business expense and the trading gain classified into capital gain?
