Thanks Mike, here you explained: without the 475(f) M-T-M election you are a day trader if you meet the criteria posted. There is no election. if audited the IRS will go over your trading activity to see if you qualify, The 475(f) election's only purpose is to change the accounting method for recognizing when and how trading gains/losses are recognized and reported. some traders make the election other don't.
In this case, assume I had a loss in 2023 and never file d 3115 or made any election along with 2022 tax return, can I use my loss as a ordinary loss and use form 4797 line II in my 2023 tax return and file sch C apply for home office and more than 50% business of new computer?
And here: With 475 (f) your trading gains or losses are ordinary income or loss not subject to wash sales rules. With 475(f) at year-end, you adjust from cost/tax basis to market value picking up as income or loss the net unrealized gains and losses. With 475(f) at the beginning of the first year the difference between the market value on the last day of the previous year and their cost/tax basis is the 481a adjustment.
In this case may I have an example please by numbers for 481a, you know a day trader should not have an opened transaction at the end of the year so what does mean this ADJUSTMENT for 481a?,
and what happens for form 4797 line II?
I stuck in gray area just help me to get it out from, thanks for your help.
