Does a person who qualify for Trader Status in 2021 but did not select 475f MTM for 2021 take QBI deduction?

Lucy196 · Apr 5, 2022 11:03:22 AM

Dear all, Does a person who qualify for Trader Status in 2021 but did not select 475f MTM for 2021 take QBI deduction?When google internet, I found a trader who qualify for Trader Status below to The SSTB (specified service trade or business) category. So if a trader has capital gain in 2021, he/she can enter expense deduction on Schedule C. Schedule C will show negative number. My Question is: can this trader take QBI deduction? If so, is any way to take this QBI deduction in TurboTax? Thanks for help, I am very appreciated your kind help.Lucy

Dear,

A trader who made 475f selection put gain/loss in 4797 form according to below

Gains or losses treated as ordinary gains or losses, if you are a trader in securities or commodities and made a mark-to-market election under Internal Revenue Code section 475(f).

It seems that TurboTax does not pick up gain from form 4797, so you cannot input office expense, so on in schedule C,

Also you cannot get QBI deduction. So could someone share ideas how to do schedule C and get QBI deduction in this case in TurboTax desktop? Thanks a lot for kind help.

Lucy