Yes, you do need to file Form 1040, which will include Form 4797 and Schedule C. As reference for you use the following link:
- IRS Topic 429-Traders in Securities
- This provides the information to enter on your statement that is attached to the return. Simply stated you can use the following statement:
- Statement of the mark-to-market election under Internal Revenue Code section 475(f) for a trader in securities.
As noted above by @ColeenD3, use TurboTax CD/Download version to complete your tax return and the information posted here for your convenience.
- You will manually add a Form 4797 to your tax return, and enter your net total gain / loss in Part II of Form 4797, using the TurboTax smart worksheet.
- Please note that you will want the TurboTax desktop software to correctly do this; the TurboTax online program will not be adequate, because you will not have access to the "Forms Mode" of the software.
- Traders report their business expenses on Schedule C. Commissions and other costs of acquiring or disposing of securities aren't deductible but must be used to figure gain or loss upon disposition of the securities.
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