If under "trader status" you complete Schedule C and itemize all your expenses, including home office deductions.... and you report ZERO income on the Schedule C, the "home office portion of your business did not show a profit" Thus any unallowed portion will be carried over to future tax years......... This makes no sense because I want to apply the home office deductions against capital gains reported. I don't need them to carry over, but since the Schedule C reflects "zero income" then how can you deduct expenses from zero? Im confused and reading the IRS website was of no help Thanks for any input here...
If you are filing with MTM accounting, "Trader Status", Capital Gains/Losses are treated as ordinary gains losses. So wouldn't Schedule C, Ordinary expenses, offset the income? I am not a CPA but I am fairly sure this works out that way. If the expenses exceed the income, you can file a NOL, Net operating loss. Check Greencompany's website for tons of FREE help!
Thanks for the help Maybe I stated incorrectly the "trader status" idea. I am not electing MTM at this time so there is no ordinary income, only capital gains/losses. Will check out that site you posted for more info!! thanks again!
No Problem! I filed a beautiful NOL carryback a few years ago and got a nice check. Ya gotta love creative accounting. Be careful with writing too much "Home Office" off.
they never messed with you on a nol carryback loss?many times when you ask the irs for money back they balk
The check cleared and never bit me in the ass. I paid them way too much tax in 1999 - 2000! My CPA is top notch.