QUESTION ON THIS TOPIC.
I'm a newbie trader.
For tax-year 2021, it's too late for me to make mark-to-market election. I had more losses than expected, but I assume it's just too late now to elect mark-to-market. (Not sure if appealing with a 1040X that I'm a new trader since 1/2021 and didn't realize I'd have to elect 475(f) mark-to-market by 4/2021 would work??).
Anyway, assuming not...at least I have several years of $3k losses to claim all teed up for myself! 🙂
I definitely qualify for "trader tax status" (without MTM) though. I finished all my turbotax entries and directly uploaded all my brokerage statements into Turbotax, so they should be accurate.
For the "Business description" field I entered "Trading options/securities (Trader Tax Status)", and Business code 523900.
I also do some part-time "moonlighting" work in my field as a business (sole proprietor); and had a bit of ebay e-commerce income (which generates a 1099-K nowadays), so altogether I have 3 businesses listed in this section.
However, unlike the other 2 businesses, the Trading options/securities business shows only "Net Income" losses (from subscription services, computer set up). No "Gross Income" (or losses) from the actual trading. Is that because those are already tallied under the Personal Income section > "Investment Income" section? is that normal for "Gross Income" to be blank?
Turbotax estimates my risk of audit is high with all these things going on, which is fine, but I'd prefer to avoid the hassle, so would really appreciate any help ensuring I got this right.
Not even sure in my case (without mark-to-market election), if it's even worth it to claim trader tax status...I guess it allows me to deduct the ~$7k business expenses, but otherwise it seems no real benefit.
Thank you!!!!!!!
