Thanks again, when the reuslt of 4797 goes on Sch 1 line 4, my question is regarding expenses that we should file Sch C for expenses. Assume client has ordinary income because of gain so should file Sch c for gain then SE tax exemption for this positive number if so we made double income; one in Sch 1 and one in SchC. I confused for this part.

Any help would be much appreciated!