For TTS traders, GreenTraderTax recommended a way to "Transfer trading gains to Schedule C" https://greentradertax.com/tax-tips-for-sole-proprietor-traders-preparing-2015-tax-returns/ when doing income tax reporting. Here is their recommendation In some cases, a good strategy for sole proprietorship business traders is to transfer some business trading gains to Schedule C to zero the income out, but not show a net profit. Showing a profit could cause the IRS to inquire about a self-employment (SE) tax, which otherwise trading gains are exempt from. (Traders who are full members of a futures or options exchange are an exception here; they have self-employment income under Section 1402(i) on their exchange-generated trading gains reported on Form 6781.) This special income-transfer strategy also unlocks the home-office deduction and Section 179 (100%) depreciation deduction, both of which require income. While Section 179 depreciation can look to wage income outside the business, the bulk of home-office deductions can only look to business income. This transfer strategy isn’t included on tax forms or form instructions. It’s my suggested industry-accepted practice to date designed to deal with insufficient tax forms for sole-proprietorship trading businesses, and it must be carefully explained in footnotes — another important strategy for business traders. It also has the effect of allowing Schedule C losses in states like New Jersey that don’t allow them. Have someone here used this strategy? How do you report the offset loss to the trading gain transferred to Schedule C; is it another line on Schedule D with an artifical loss?