Sch C income

[sam992116]

I will be filing my tax return as Trader (TTS) but without 475 election.

I will Not have any income on Sch C, only business expenses and certain expense deductions such as home office can only be offset by income on Sch C (which I don't have).

I just looked at Sch C in Forms mode and those expenses went to Schedule 1. In Schedule 1 my 1099 Misc income is already listed there.

Q: Is this default location of 1099 Misc income to go on Schedule 1?

I read book on trader taxes and author (he makes money writing books then perhaps some of those readers may hire his very expensive  tax preparation services primarily for Traders!) was mentioning in his book traders with only TTS can transfer some of trading gains to the extent of Sch C expenses move to Sch C (net is zero)

According to him, Report some gains from trading (Form 4797, Form 8949 and form 6781) on Line 8 of Home Office Form 8829. He was pointing result will be there is No net loss/gain and Trader can generate a Home Office Deduction. According to him add Foot notes to explain what you did (can one add foot notes in TurboTax?).

Q: Is it possible?  or is this asking for trouble?

Thanks for taking time to answer my question.

[tagteam]

I believe transferring expenses to Schedule D to offset gains is incorrect; use Schedule C for expenses.

I'll page @Mike9241

[Mike9241]

schedule C expenses stay on schedule C.  it is common for traders to have a schedule C loss because they have expenses with no revenue properly reportable on schedule C. even with a 475(f) election the results for schedule c would be the same because trading profits/losses go to form 4797 line 10