Electing Mark-To-Market to avoid future 1099 troubles?

[nkhoi]

Quote from JackR:

It is difficult to believe that the IRS, the brokers, and the tax program people will not have things pretty well figured out by the start of the next tax season.

I trade futures so I don't pay much attention to mark-to-market. But if there are tax advantages to you not being mark-to-market it might be worthwhile waiting. As I understand it, once you've made the declaration you are stuck with it for that year and must undeclare, if desired, for future years. Otherwise, it persists without further action.

Jack

there is no clear instruction to 'undeclare' but maybe the law change?

 

[JackR]

Nkhoi:

This is from the IRS web site. It tells how to unelect mark-to-market.

If you have made a valid election under section 475(f), the only way to stop using mark-to-market accounting for securities is to request and receive written permission from the Service to revoke the election. Non-filing of the Form 3115 mentioned above will not invalidate a timely and valid election. To request permission to revoke your election under section 475(f), you must file a second Form 3115 and pay a fee.

For more info search for "Topic 429 - Traders in Securities (Information for Form 1040 Filers)" @ www.IRS.gov


Jack

 

[nkhoi]

Quote from JackR:

Nkhoi:

This is from the IRS web site. It tells how to unelect mark-to-market.

If you have made a valid election under section 475(f), the only way to stop using mark-to-market accounting for securities is to request and receive written permission from the Service to revoke the election. Non-filing of the Form 3115 mentioned above will not invalidate a timely and valid election. To request permission to revoke your election under section 475(f), you must file a second Form 3115 and pay a fee.

For more info search for "Topic 429 - Traders in Securities (Information for Form 1040 Filers)" @ www.IRS.gov


Jack

20 pages of instruction! luckily I know how to use find button.