Investors & landlords

Reply to your follow-up:

• As noted previously, this is a complicated area and highly scrutinized.
• You need to make the MTM election by the original due date of your 2023 tax return.  If you are extending your 2023 tax return, then the election needs to be filed with the extension.  This means you will need to paper file the extension and election.
• The form 3115 will need to be attached to your 2023 return when filed.  You also need to file a second copy of the form 3115 with the IRS National Office.
• The MTM election and form 3115 are two different filings.  The form 3115 is not the actual election.
• As noted in my previous response, your 2023 investment activity is handled just like anyone else; reported on form 8949 which carries to Schedule D.
• You need to get some professional tax advice.  You can be a day trader, you can be a day trader with trader tax status (TTS), and you can have TTS and make a Section 475 election.  Each of these has different tax implications.
• When you make your MTM election you need to be clear and specific on what the MTM is covering; securities only, include commodities / Section 1256 contracts, etc.  This is very important and understanding what to include in the election is critical.
• You can only make the MTM election if you have TTS.  This is not an easy hurdle and understanding the volume of trades to attain this is important.
• I don't recommend you do anything until you have had a meeting with a tax professional and you understand what you are getting into.  Keep in mind that not all tax professionals have a good grasp on this area of tax.