You can make the election by attaching a statement either to your income tax return if filed without an extension or to a request for an extension of time to file your return.
See https://www.irs.gov/taxtopics/tc429
See also https://ttlc.intuit.com/community/taxes/discussion/day-trading-taxes/00/1194031
Thank you for the prompt respond, but my question was related to electronic filing, if I do that, should I just send the election to the IRS by mail or a copy of my tax return with the election attached?
A copy of your tax return with the election (by the due date, obviously).
When making the MTM election. Can you efile first and later mail the election with your return after the e-filing is completed? Thank you
It's just a statement and it needs to be attached to the return or to a request for an extension to file the return.
See https://www.thetaxadviser.com/issues/2010/feb/sec475mark-to-marketelection.html
Just for clarification on your answer, it needs to be attached to your return and mailed in at the same time. It cannot be mailed separately after efiling your return.
Appreciate the responces. Thoughts on the following?
Mr John Smith
SSN [removed]
DATE 04/03/2024
Attachment to the 2023 Form 1040
I, Mr Smith hereby elect to use the mark-to-market method of accounting under section 475(f) of the Internal Revenue Code for my trade or business of trading securities. The first year for which the election is effective is the taxable year beginning January 1 2024.
AND/Or I, mark 64 on form 3115
Thoughts on which one or both?
I do my taxes with both TaxAct and Turbotax. TaxAct lets you efile with attached pdf documents for exactly your situation, where you want to make an election. It is something I and others have asked Turbotax to implement for years, something TaxAct has had for over 10 years. I can't recommend Turbotax for this and other failings. (A bug I found two years ago and reported to TaxAct and Turbotax at the same time was fixed in TaxAct but not in Turbotax, for example).
If you make the MTM election you'll have to file a paper tax return because your transaction details do not go on Form 8949.
Look at https://www.taxact.com/support/[removed]/notes-and-explanations-for-e-filing
to allow for general statements for your return like making a federal election.
Again, I wish Turbotax would implement something similar.