Hi there,
Well I have what looks like a large IRS bill this year because of quite bit of trading activity and wash sales.
I have go through some of the discussions and it seems like that for 2022 taxes I will have to report on capital gains and loss basis and eat up the disallowed wash sale loss.
And that in order to get the MTM status I should need to file election 475 so that for 2023 taxes that will be filed in 2024 - I can be treated as a day trader and mark to market my transactions and have ordinary losses.
q1. Is there anything else that I need to submit in order to get the day trader status?
My broker has told me that even though if I get the day trader status the mark to market will be effect for them once I report the day trader status approval from IRS. So mark to market treatment will start perhaps in may or june when I get a positive response from IRS. Broker statement will not reflect mark to market for previous transactions in the year.
q2. in the next year for 2023 how would I treat the entire year's transaction with Mark to market? or am I stuck with reporting half the year using the capital gains method and half the year using mark to market?
q3. is there anything else beside 475 election that I need to file along with my tax return to get the mark to market treatment and day trader status?
this is super confusing and no one talks about this - this is a huge problem.
great appreciate your help!!
thank you
