@Mike9241 response included the following:
note that form 3115 is not required if the 475(f) election is made for the trader's first year of business. REV PROC 2023-24
The Rev Proc cited is a general revenue procedure that deals with accounting method changes.
Let's clarify this for readers.
A form 3115 never needs to be filed when making an election in a taxpayer's first year.
However, based on these facts, that does not apply.
The revenue procedure states "Form 3115 filing requirements. In addition to filing the Election Statement described in section 24.01(4) of this revenue procedure, unless the election year is the first taxable year in which the taxpayer owns securities or commodities, whichever is applicable, a Form 3115 is required to be filed with the federal income tax return for the year of change (the election year)...".
This is NOT the first year you have owned securities, and hence, you do need to file form 3115 as noted previously.
Additionally, if this is a sole proprietor, this also is not your first year 1040.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
