assuming you qualify for the 475(f) election is must be made with the original return for 2023 on or before its due date or with a timely filed extension for the 2023 return to be effective for 2024. trading profits/losses get reported on form 4797 not schedule C. trading expenses get reported on schedule C.
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A taxpayer may be a trader in some securities and may hold other securities for investment. The special rules for traders don't apply to those securities held for investment. A trader must keep detailed records to distinguish the securities held for investment from the securities in the trading business. The securities held for investment must be identified as such in the trader's records on the day he or she acquires them (for example, by also holding them in a separate brokerage account - you can understand that having investments and trading securities in the same account could cause reporting problems with the brokerage but check with then for what they say). if you don't timely designate a security as being for investment the profit or loss is ordinary (trading) even if the security is held long-term
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a single member LLC is disregarded so there are no issues that it would cause you in making a valid 475(f) election
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IRS tax topic 429
Gains and losses from selling securities from being a trader aren't subject to self-employment tax.
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As a trader, you 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 you intend the election to become effective. 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:
- That you're making an election under section 475(f);
- The first tax year for which the election is effective (that is, the tax year for which a timely election is being made); and
- The trade or business for which you're making the election.
If you’re a new taxpayer that wasn’t required to file a tax return for the prior year, you may make the election by placing the above statement in your books and records no later than 2 months and 15 days after the first day of the year for which you intend the election to become effective. You must attach a copy of the statement to your tax return for that year.
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since you are using securities already owned as collateral, my opinion is that they would be taxed as investment gains/losses. you may want to consult a tax pro to get their opinion.
