There is nothing on Schedule C that is MTM. That's only what's reported on the 4797. if you used the cash basis before the MTM election check that. Accrual - check that. First year trading? Select one of the two. Cash you get to deduct expenses in the year they are paid, accrual in the year they are incurred. The method must be continued in future years unless you apply for a change in accounting methods.
