Based on my research so far, I don’t think we can go back and amend for the MTM election. Like you stated, it seems those rules are in place to prevent traders from taking advantage.
However, I did find one article that stated “possibly amend a previous year’s tax return” but, I still need to keep looking more into that. Below is part of the article that you could grab and search it up (not sure if turbotax removes/allows other sites links to be posted, especially from competitors lol. I want to provide just enough info so other new traders can benefit from the tread):
"There are two major advantages of electing MTM:
- Since all positions are marked to market (priced to year end market prices) at year end, there are no wash sales to calculate or report to the IRS.
- If you happen to have a loss from trading greater than $3,000, you can deduct this loss from any other income, and possibly ammend a previous year's tax return and get a refund. "
Or perhaps @GeorgeM777 could also shed some light about “possibly” amending previous tax returns once approved for MTM.
