Discussion:Self-employed commodities trader with home office

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Discussion Forum Index --> Tax Questions --> Self-employed commodities trader with home office

Woodstock (talk|edits) said:

9 April 2007
Filled out a Form 6781 with gains for a self-employed trader and indicated that the profits were subject to SE tax. Now, this trader made $100,000+ and has business expenses, so I put them on a schedule C. Line 12 is showing a big old loss and won't of course, let me do a home office because no income. Is there a way for this trader to take his home office? PLEASE HEEELLLPPP!

Riley2 (talk|edits) said:

9 April 2007
A commodities trader is not subject to SE tax on his Sec. 1256 gains. See Sec. 1402(a)(3)(A). This would be true even if he makes a "day trader" election.

However, I see no problem with the home office deduction. Your software should have an input area to indicate the Sch. D or Form 4797 net gains to be included on line 8 of the 8829.

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