transfer income from D to C

Discussion in 'Professional Trading' started by lkh, Mar 7, 2004.

  1. lkh


    I have been studying tax strategy and have run across an idea from a trader tax firm that says you can transfer trading income from the schedule d to the schedule c as earned income. If this is possible it opens up a lot of possibilities including section large section 179 deductions and retirement funding.
    Has anyone done this and could you give specific details of how its done. tia.
  2. Before you cause a real mess for yourself ...the Sec 179 deduction has nothing to do with earned income.

    Consider if perhaps taking a partial idea from an advisor and running with it - rather than hiring the advisor you referred to - is being penny wise and pound foolish.
  3. lkh


    i believe it does have to do with having income on the schedule c doesnt it?
  4. lkh


    (3) Limitation based on income from trade or business

    (A) In general

    The amount allowed as a deduction under subsection (a) for any taxable year (determined after the application of paragraphs (1) and (2)) shall not exceed the aggregate amount of taxable income of the taxpayer for such taxable year which is derived from the active conduct by the taxpayer of any trade or business during such taxable year.

    Ok thanks. Section 179 isnt my main question. My main question is: Is it a valid theory that a trader can just transfer income from schedule D to schedule C as desired?