This will be my first year as a professional trader with elected m to m status. I will show a loss though the size of it can't be determined yet. Because I also generate significant gains from other self employment, I am wondering about the likelihood of audit or other troubles I should be preparing for now. Also, would an audit likely confine itself to the trading or include the other biz too? I think I have a pretty convincing case that the trading is a lot more than a hobby. Expense-wise, I could break out what was needed for trading if I had to but a lot of it meshes in with my other biz such as computer, subscriptions, etc.. Investments are clearly separate so that isn't a problem. My accountant keeps telling me not to worry - that people don't start trading businesses like mine to lose money. I'm still not convinced because the other biz does very well and makes me think my trading would just look like a sham to reduce taxes. Geo.