a trader (as opposed to an investor) has an option
don't make the 475(f) election - expenses go on schedule c but security transactions go on schedule D and are subject to the wash sale rules
make the 475(f) election. must be made by the original due of the return for the year before the election is to take effect ( i.e, file by 4/15/2022 for it to be effective in 2023)
the expenses go on schedule c., security transactions are reported on 4797 as ordinary income - no wash sales but you have to adjust your gain or loss for the year by the difference between the cost basis of the securities and their year-end market value - so unrealized appreciation will add to your income while unrealized deprecition will reduce it. the 475(f) election is the mark to market election
