I have already filed my 2017 return but want to make a mark to market election for 2018 can we amend this to my filed 2017 return ?

[DawnC0 · Accepted solution]

No, you do not need to actually amend your return to make that election.  To make the mark-to-market election for 2018 you need to attach a statement to your 2017 tax return.  There is not an actual form for making this election.  In order to make this election, since you have already e-filed, you will need to mail in a Form 8453 and attach a written statement.  The statement should include the following information:

1. That you're making an election under section 475(f);
2. The first tax year for which the election is effective; and
3. The trade or business for which you're making the election.

When you file in 2018 you will need TurboTax Self-Employed or Home and Business (desktop version) since your trading will be reported as a business.  

Please see Tax Topic 429 for more detailed information on how to make the election in 2016 effective for the tax year 2017, how to report this on your 2017return, and special requirements to be able to make this election.

https://www.irs.gov/taxtopics/tc429.html 

Even more information on making the Mark to Market election can be found here - https://www.thetaxadviser.com/issues/2010/feb/sec475mark-to-marketelection.html

A trader must make the mark-to-market election by the original due date (not including extensions) of the tax return for the year prior to the year for which the election becomes effective.  So, you have until April 17 to make this election for 2018.  

If you are all ready an established business, you can make the election on Form 3115 (changes in accounting method) and include it with the 8453.  Check off 'Other' and specify the 'Mark to Market' election.  

[hc5714900]

Hi,

If I efile, how can I send my MTM election to the IRS?

Thanks

[ReneeM7122]

The only way to make the election on a prior year return is to mail Form 8453 to the IRS and include a statement with the following information: 

1. That you're making an election under section 475(f);
2. The first tax year for which the election is effective; and
3. The trade or business for the election.

@hc5714900

[Crafty3]

How will they know who sent the election if I already e-filed? Do I need to include my name or ssn on the document or will they just take the information from the envelope?

[MarilynG1]

Your identifying information is on Form 8453.

Click this link for a PDF of Form 8453. 

[Crafty3]

so in my case I would "check" Form 3115 Application For Change in Accounting Method, since I am sending in a mark to market election?

[KrisD15]

If using TurboTax Desktop, you could have included form 3115 with your 1040. 

Yes, if you already filed your Federal return, you would select "Form 3115" on the Form 8453. 

Include Form 3115 and mail to:

Internal Revenue Service 

Attn: Shipping and Receiving, 0254 

Receipt and Control Branch 

Austin, TX 73344-0254

[Crafty3]

If I reside in California would I need to send it here?: 

Department of Treasury
Internal Revenue Service 
Ogden, UT [removed]

[MarilynG]

Here's the IRS Info for mailing Form 3115.

[sampsonnbeast]

ok what happens if I want to go back to my 2020 because I just realized I qualify as day trader but it already calculated my losses as capital losses. They are actually supposed to be income loss so do I need to amend my taxes and redo so they are

Correct market to market ?

[Critter-3]

Sorry but the mark to market election must be made a year in advance ... you cannot make the election retroactively.  The 2024 election needs to be made by 4/15/23 on the 2022 tax return.