Curious.. If you have $5,000,000 proceeds, cost basis of $4,800,000 and expenses of $25,000, how would you account for this assuming you changed your accounting status? Schedule C - Sales $5,000,000 Cost of Sales $4,800,000 Expense listing by category - $25,000 Net income $175,000? So you list nothing on Schedule D? And you pay zero self employment tax? And you can write off 100% of health insurance? Can you also then fund a SEP?