Get your taxes done using TurboTax

Question 1 - No; however, 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.  In other words, if you wanted to elect MtM for tax year 2023, such election is due (no extensions allowed) by the due date for your 2022 tax return.  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. 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 (that is, the tax year for which a timely election is being made); and
3. The trade or business for which you're making the election.  

Question 2 - The IRS does not approve or disapprove a trader's initial MtM election.  Once you make the election, if you later decide to terminate such election, then you must notify the IRS in writing.  You can find out more about revoking your MtM election by reviewing Revenue Procedure 2022-14, Section 24.02.  

Regarding your MtM trading activities, it is usually recommended that traders have one account for MtM trading, and other accounts that are limited to investments.  Separating your trading activities into separate accounts makes your accounting and tax reporting much less complicated.  Because the statement you file with the IRS electing MtM is due with your tax return, such election is effective at the beginning of the tax year.  

Question 3 - Additionally, for securities traders who have elected mark-to-market accounting (Section 475(f) of the Internal Revenue Code) IRS instructions for Form 4797 provide that the security trader must attach a statement to their return using the same format as line 10, showing the details of each transaction. Moreover, the statement must separately show and identify securities or commodities held and marked to market at the end of the year.  TurboTax does not support the creation or importation of the trader's statement.  Thus, you will need to separately prepare your statement and attach it to your return. Your completed return will need to be paper mailed to the IRS.  

@nas2