Trader Status and Mark-to-Market

W

wiesman02

I've got a couple questions on trader status and mark-to-market for equities only as I'm considering adding equities to my daytrading arsenal now. The past threads on this were very confusing that I searched for. So here are my questions.

1) Is there a difference between trader status and mark-to-market ? I only want to eliminate wash sale rule.

2) Did I have to state my intention for this by April 2014 for the 2015 trading year ? If not, what do I need to do ?

3) Anything else that I'm missing ?
 
You don't necessarily need to elect M2M as long as you go flat and don't trade equities for a certain period before and after January 1st. You need to research the exact date's. Basically don't trade equities middle of December until sometime in January.

Don't rely on a message board for the information, perform your own due diligence. IRS is a good place to start.

Some old links for reference:

http://www.irs.gov/taxtopics/tc429.html
http://www.fairmark.com/traders/mtmacc.htm
http://www.tradelogsoftware.com/resources/mark-to-market-form-4797
http://www.greencompany.com/
http://bit.ly/1FCNU4E
 
Ok, so being that I've been on these forums for years, let me rephrase this. I don't need links to sites, and I dont need 23yr old kids giving advice like the above poster who've probably never filed a tax return before. While the above poster has a point, I shouldn't be relying on the message board, the good news is I'm not relying on it !

I've done my research, and I'm merely looking for confirmation on what I already know.....that I'm pretty f**ked for 2015 as I did not submit my statement of intent by April of 2014 stating mark-to-market status so I can get around wash sale rule.
 
wiesman02 said:
I've got a couple questions on trader status and mark-to-market for equities only as I'm considering adding equities to my daytrading arsenal now. The past threads on this were very confusing that I searched for. So here are my questions.

1) Is there a difference between trader status and mark-to-market ? I only want to eliminate wash sale rule.

2) Did I have to state my intention for this by April 2014 for the 2015 trading year ? If not, what do I need to do ?

3) Anything else that I'm missing ?
More...

Trader status and MTM are different/independent

MTM is about avoiding the wash sale rules, and needs to be elected early, like you said. Also be careful, you probably want to elect MTM for equities only, as you don't want to report your futures trades on form 4797 and lose the 60/40 tax treatment.

Trader status doesn't need to be done early, it's basically designating yourself as a professional full-time trader when you file your taxes, so you can deduct expenses.
 
wiesman02 said:
Ok, so being that I've been on these forums for years, let me rephrase this. I don't need links to sites, and I dont need 23yr old kids giving advice like the above poster who've probably never filed a tax return before. While the above poster has a point, I shouldn't be relying on the message board, the good news is I'm not relying on it !

I've done my research, and I'm merely looking for confirmation on what I already know.....that I'm pretty f**ked for 2015 as I did not submit my statement of intent by April of 2014 stating mark-to-market status so I can get around wash sale rule.
More...

You must be one dumb fuck.

You need help, yet you treat the public board with disrespect, I know the answer, know it quite well, got more details than you asked for, but you know what, go clean your ass and drink the water,cause that's what you are, an ahole.
 
tough neighborhood.......If you elect MTM, you are claiming trading as a business not investing. Does that mean you have to pay double SS because now you are self employed? Sounds like a big penalty to avoid wash sales.
 
1245 said:
tough neighborhood.......If you elect MTM, you are claiming trading as a business not investing. Does that mean you have to pay double SS because now you are self employed? Sounds like a big penalty to avoid wash sales.
More...
no, that is not true, neither mtm or trader status converts you somehow to an entity. You can have both or either mtm or trader status and still file as an individual.
 
I guess my question is that as an individual, if you claim to be a professional trader on your tax return, then don't you have to show your income and expenses from trading as a sole prop business? The IRS might recognize that as earned income not investment income.

Any accountants reading this?
 
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