What are you talking about? I've been doing it for nearly a decade. I would think most serious traders do this.
Ok I am doing a K1 for the first time and although a bit confusing using a w2 for years it doesn't seem that bad. I just filled out schedule D (1040) as instructed by my K1 but I have expenses I want to deduct too. I used a couple of news services + i traded from a home office + my health insurance premiums were high too. I don't really understand that u get an automatic audit if you have those expenses but I'll deduct them anyways because I paid for them. Now I just wanted to make sure that all those expenses (news services, home office, health insurance premium etc.) are going to be on Schedule C? Is that correct? Thanks
Seek out professional advice... i.e. CPA... for a couple of hundred dollars, It will be the best $200 you will ever spend...
Just figured it would be a simple question whether I deduct expenses such as home office, news services health insurance etc on schedule C or something else. I am sorry that one fairly simple question (hope its simple) isn't worth $200-$300 to me. Thx
If you don't value a CPA signing off over a potential audit, then your priorities are in the wrong place, the CPA fee is deductible off next year's taxes and he will probably save you a few more thousand off this year's. I file some of my expenses on a schedule C, part V, and some others on Schedule A, but my accountant fills in the forms! Good Luck, surdo
Chances are that those items you WANT to deduct are not qualified, very few items are. You may consider yourself a business, however, the IRS may not. A CPA will prevent you from serious mistakes and penalties. Simple question, simple answer.