it's not even a red flag,deducting 800K in expenses on personal tax return..it's a nuclear explosion...you have to be really dumb to believe that somehow it will fly and IRS won't notice it.
You're missing the point.
Yea, 800K and 300K are clearly flags. But look at the OTHER WAYS trader tax status failed. Many on ET would/will fail the criteria if/when they are audited.
she filed: Legal and professional $352,000 but -$0- when it went to court. Obviously this taxpayer had a mental problem, whatever this person did has no bearing in real life filing.
