How do I report sale of stock WITHIN my schedule c business

[Doc707]

I have a schedule C business of stock trading.  My trading expenses go on schedule C.  If I enter my trades in Schedule D then TT sees my Schedule C business as losing money but that is not the case.  How do I get TT to recognize that the trading profits are the income for the schedule C business?  Thanks in advance!

[fanfare]

Please consult: 

Topic No. 429, Traders in Securities (Information for Form 1040 or 1040-SR Filers)

https://www.irs.gov/taxtopics/tc429

@Doc707 

[Doc707]

@fanfare Thank you for responding.  My question is not what forms to file but rather how to get TT Premier to see the relationship between the Schedule D which currently has a substantial net profit and schedule C which shows only expenses.  This is important because my health insurance expense in Schedule C is being limited because the Schedule C shows no revenue.  Thanks in advance.

[fanfare]

This has been discussed in the forum many many times.

I think many of the proposed solutions are wrong.

I'm not an Enrolled Agent so I can't comment on what to do with any authority.

( if you find any of my old answers, take them with a grain of salt.)

[Doc707]

@fanfare 

I'm sorry, I'm a newbie here.  Can you tell me how to find the discussion please?

[TomD8]

A sole proprietor trader reporting only expenses on Schedule C cannot take the self-employed health insurance deduction, because the health insurance deduction requires earned income.  Capital gains are not considered earned income.

In order to qualify for the deduction, a day trader would have to form an entity, such as an S Corp or LLC.

This is all well explained in this web reference:

https://tradersaccounting.com/2017/10/20/tips-for-self-employed-health-insurance-deductions/#:~:text....

[fanfare]

    @Doc707 

Newbie--

to search the forum enter relevant keywords in the search box within the wide blue banner above.

[Doc707]

Thank you TomD8; that was helpful.  Are trading sole proprietor trading businesses entitled to the QBID deduction?

[Doc707]

I don't see a search box.  The blue banner just says "Still need to file? Our experts can get your taxes done right. Get started >".

[fanfare]

A) you have to scroll UP. This is important.

B) if you are in the thread page the box is under the narrow blue banner.

@Doc707 

[TomD8]

"Are trading sole proprietor trading businesses entitled to the QBID deduction?"

No, not if your business income consists of capital gains.  Qualified business income does not include investment income, capital gains or losses, dividends, income earned from businesses outside the United States or interest income.

[Doc707]

@fanfare Perfect instructions.  Thank you!

[Doc707]

@TomD8  Thank you!!