How to deduct my health insurance premiums with Turbo Tax as a Trader

[bsp2020]

Hi,

I'm trying to deduct my health insurance premium since I'm sure I qualify as a trader. How do I elect trader tax status in Turbo Tax? I have seen discussions of Trader Tax Status in other posts but they are mostly about mark-to-market election. I do to want to elect mark-to-market. I just want to deduct my health insurance premium.

Does anyone know how to do this? Any help will be appreciated.

Thank you!

[Mike9241 · Accepted solution]

Problem for Sole Proprietor Traders

Sole proprietor traders have one limitation. You are only permitted to deduct as much health insurance premiums as you earn from your trading as reported on Schedule C. If your business does not make a profit, there is no deduction. The IRS classifies gains from security trades as unearned income. If a sole proprietor trader makes a profit (net trading gains less schedule C expenses), they still can’t take the health insurance deduction because their business has no earned income. 

you don't indicate on your tax return that you are a trader. without the M-T-M election, you report your expenses on Schedule C while your trading activity gets reported on Schedule D 

the IRS identifies you as a trader by the business code in box B