|
Investor |
Stock trader |
Dealer |
|
No MTM election |
With MTM election |
| Income |
|
|
|
|
|
Where are stock sales reported? |
Sched D |
Sched D |
Sched C (1) |
Sched C (1) |
|
Do capital loss limitations apply? |
Yes |
Yes |
No |
No |
|
Do wash-sale rules apply? |
Yes |
Yes |
No |
No |
|
Where is dividend income reported? |
Sched B |
Sched B |
Sched B |
Sched C |
| Expenses |
|
|
|
|
|
How expenses are claimed |
Sched A |
Sched C |
Sched C |
Sched C |
|
IRS Code reference |
212 |
162 |
162 |
162 |
|
Can you claim home office deduction? |
No |
Yes |
Yes |
Yes |
|
Can income be deferred through use of retirement
plan? |
No |
No |
No |
Yes |
|
Is interest expense subject to investment
interest limitations? |
Yes |
No |
No |
No |
|
Is income subject to self-employment tax? |
No |
No |
No |
Yes |
| (1) All gains and losses will be
reported on Form 4797, this total is transferred to Schedule C |
