The Mark-to-Market Election (optional, generally used to avoid the issue of wash sales) Traders can choose to use the mark-to-market rules, but investors can't. If a trader doesn't make a valid mark-to-market election under section 475(f), then he or she must treat the gains and losses from sales of securities as capital gains and losses and report the sales on Schedule D/ Form 8949 as appropriate. When reporting on Schedule D, both the limitations on capital losses and the wash sales rules continue to apply. However, if a trader makes a timely mark-to-market election, then he or she can treat the gains and losses from sales of securities as ordinary gains and losses (except for securities held for investment - see above) that must be reported on Part II of Form 4797, Sales of Business Property. Neither the limitations on capital losses nor the wash sale rules apply to traders using the mark-to-market method of accounting.
May a day trader face to wash sale or not? If I had wash sales on that report and amount of proceeds, amount of cost and wash sale amount, let me know should I add wash sale amount to my cost? or should be ignored.
I mean what should I do with the number of wash sales as a day trader, where does it go?
