Let me repeat, directly from the IRS website See Topic No. 429 Traders in Securities (Information for Form 1040 for the required reporting based on investor, trader or dealer.
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 1040), Capital Gains and Losses and on Form 8949, Sales and Other Dispositions of Capital Assets as appropriate. When reporting on Schedule D, both the limitations on capital losses and the wash sales rules continue to apply.
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