The instruction from http://www.fairmark.com/traders/mtmelec1.htm states the election is made by attaching the statement to the tax return. I have already filed the return electronically and it's been accepted by the IRS. Are there other ways to declare the M2M status? I hope I have not missed the chance for M2M election for 2006! The deadline is 4/15/2006. Can I just send in the declaration by itself? Thank you.
M2M election
- Thread starter piggie
- Start date
Right off the page you provided the link from:
Note: You may read elsewhere (as I have) that this election may be filed by itself. The IRS clearly states that the election must be attached to the return or the extension request.
Note: If you filed early you can still make the election if you act by the due date of your return. File an amended return with the election attached.
It seems clear that you have not done your homework, since the excerpts above were prominently displayed on the web page. The M2M election is serious, irrevocable, and a certain amount of technical proficiency is required to determine if the election is appropriate for the taxpayer, and to actually go through the motions.
You'd be wise to thoroughly research M2M before acting on it.
If you trade any commodities (e-minis, etc.) and you're pretty sure you're not going to have net losses for your commodity trading (exclusive of securities gains/losses), consider designating your MTM election for securities only so you don't lose your 60/40 tax treatment on commodities gains. If you don't trade them or if you think you're going to have net losses on commodities trades, then don't worry about it.
Of course, you should confirm the above with a qualified tax advisor (and for your original question as well).
Regards,
Of course, you should confirm the above with a qualified tax advisor (and for your original question as well).
Regards,
Amend the return and add the 3115 Change of the accounting method by 4-17-2006