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?
say you made a timely election in 2023 to use the M-T-M election for 2024. At the end of 2023, you have no open positions in trading securities (not every person who refers to themselves as a day trader actually closes out all positions every day and at year-end) then the 481a is $0 because the Market value of open trading positions is zero and their tax basis is zero.
as previously noted gains and losses on trading securities with the M-T-M election are ordinary income/loss report on Part II, line 10 of FORM 4797. trading expenses would go on schedule C.
