Tammy comes home from her day job and usually spends a couple of hours every evening “managing” her stock portfolio on fidelity.com. Does this activity mean that Tammy is engaged in a “trade or business” for FIT purposes? (a) Yes, and therefore she should report her gains and losses on Schedule C, assuming that she made a proper and timely § 475(f) election. (b) No, and therefore she should report her gains and losses on Schedule B. (c) No, and therefore she should report her gains and losses on Schedule D. (d) No, and therefore she should report her gains and losses on Schedule E. (e) Actually she should just report the results of her yearly stock market activity as a single net dollar amount – positive or negative, as the case may be – on line 8 (“Other income”) of Form 1040, Schedule 1
Tammy comes home from her day job and usually spends a couple of hours every evening “managing” her stock portfolio on fidelity.com. Does this activity mean that Tammy is engaged in a “trade or business” for FIT purposes?
(a) Yes, and therefore she should report her gains and losses on Schedule C, assuming that she made a proper and timely § 475(f) election.
(b) No, and therefore she should report her gains and losses on Schedule B.
(c) No, and therefore she should report her gains and losses on Schedule D.
(d) No, and therefore she should report her gains and losses on Schedule E.
(e) Actually she should just report the results of her yearly stock market activity as a single net dollar amount – positive or negative, as the case may be – on line 8 (“Other income”) of Form 1040, Schedule 1.
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