@Sam Hopi The election and 3115 must be filed with your 2023 return on or before its original due date. If you can't file by 4/15/2024, the election and 3115 can be included with a timely filed extension.
tax year of change ends 12/31/2024
part II line 4 you should be able to answer. will you trading business end in 2024 yes or no?
part 11 line 5 section 381 is only for corporations which you are not.
part II line 13 is NO you are not changing your overall method of accounting. something like reporting all income and expense items on the accrual basis method vs the present case basis method.
the 481(a) adjustment is the difference between the market value of your trading securities on 12/31/2023 vs their tax basis. a year-end broker's statement probably has both so you can attach it as support. be wary. review it. If you trade publicly traded partnerships, your broker's statement probably won't have your tax basis. for those you may need the k-1. also, some dividends you received in 2023 might be a return of capital that reduces your tax basis in the security and likely won't be reflected on the December statement.
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a negative 481(a) loss must be taken into account in doing your 2024 return a positive 481(a) must be spread over 4 years unless $50K or less see part IV question 28
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as note Schedule A does not apply
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besides the 3115 a statement must go along
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.
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Automatic change requests. Except if instructed differently,
you must file Form 3115 under the automatic change procedures
in duplicate as follows.
• Attach the original Form 3115 to the filer's timely filed
(including extensions) federal income tax return for the year of
change. The original Form 3115 attachment does not need to be
signed.
• File a copy of the signed Form 3115 (duplicate copy) with the
IRS National Office at the address provided in the Address Chart
for Form 3115, later, no earlier than the first day of the year of
change and no later than the date the original is filed with the
federal income tax return for the year of change. This signed
Form 3115 may be a photocopy. For more on the signature
requirement, see Name(s) and Signature(s), later. Alternatively,
the duplicate copy of the signed Form 3115 may be submitted by
fax.
The IRS does not send acknowledgments of receipt for automatic change request
see 3115 instructions for where to file the copy
https://www.irs.gov/pub/irs-pdf/i3115.pdf
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if you are unsure of anything engage a pro. Blowing the election can be extremely costly.
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Please note I have not recently filed a 3315 for a trader so the above is based on reading the 3115 instructions and what I did for a trader a long time ago. the form has changed since then.
you might want to read IRS PUB 550 (2022) section called "Special Rules for Traders in Securities."
https://www.irs.gov/pub/irs-pdf/p550.pdf starting on page 67
