Thanks Rick.
I really did not understand sorry.
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? What does mean, please give an example.
Please understand me, I read all of this already, my problem is when you are talking about years, I have two questions and I do not know what year of my two questions' are you talking for?
Let's back two my questions':
1- I want to start day trading 1/1/2024 , should I file 3115 through my 2023 tax return? What is MTM for me in this case? Should I take any election?
Now, please give me the answer based on the REV PROC 2023-24
2- If I have had a loss $10000 ( example) for day trading in 2023; and never filed 3115, never made election, never made MTM, what can I do, but I am sure I was a day trader per instruction.
Now, please give me the answer based on the REV PROC 2023-24
Perhaps, I have still problem with when 3115 should be filed, when MTM should be elected, what are the differences? Just please go over on Day Trading.
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....... I did not get it ???
I really appreciate it for clarification!
